Differences within the Hamied family, Cipla Ltd’s promoters, over the pricing of the deal and the decision of patriarch Yusuf K. Hamied to sell the drugmaker threaten to derail the $7 billion sale plan, according to five people aware of the discussions.
Any sale may take longer than anticipated since a consensus is yet to emerge within the Hamied family, the people said on condition of anonymity. Some family members have questioned the deal’s pricing of around ₹1,200 per share and the family’s decision to exit the eight-decade-old business.
“A non-agreement on pricing from a faction of the Hamied family has put the deal process on the slow track," said one of the people.
“The third-generation of the Cipla promoter group family is not keen to exit at this stage unless a substantial premium is offered to their shareholding," said the second person.
According to the first person, Sophie Ahmed (Yusuf Hamied’s sister) and Samina Hamied (Yusuf’s younger brother M.K. Hamied’s daughter), who together own 7.93% of Cipla, are not in favour of the deal.
Samina Hamied declined to comment on the matter. Emails sent to Hamied family members remained unanswered.
According to several news reports, Gujarat-based Torrent Pharmaceuticals Ltd has evinced interest in buying the promoter stake and taking over Cipla, valuing the company at over ₹1 trillion.
Kotak Mahindra Bank Ltd’s investment banking arm has been mandated by a faction of the Hamied family to shortlist an appropriate acquirer.
Bu hikaye Mint Mumbai dergisinin October 11, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Mint Mumbai dergisinin October 11, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
India in economic sweet spot, inflation to moderate: Moody's
India's economy is in a sweet spot and its inflation is expected to moderate despite a temporary spurt, Moody's said, projecting optimism about the country's growth prospects despite recent underwhelming data.
Incentive engine to drive modern ships
Subsidies for green, high-tech ships under ₹18,000 cr policy
Cement firms wage war on costs as competition soars
India's cement makers who once flexed their pricing muscles are caught in a bruising price war, eroding margins at a time of rising demand.
Saudi Arabia doesn’t have enough money for its futuristic city
The giant futuristic planned city of Neom is proving a headache for Saudi Arabia. Costs are up, schedules are delayed, and in recent days the world’s largest construction project replaced its chief executive of six years.
EV adoption is a marathon, not a sprint: Audi India
The slowdown in electric vehicle (EV) sales is temporary, and the industry will grow over time, Audi India head Balbir Singh Dhillon said, pointing to the need for extensive charging networks and supportive government policies.
India's trade gap with China soars in Apr-Oct
The country's green transition increases reliance on Chinese imports
14 nations eye India's generic drug model
Countries will specify their requirements, with HLL and MEA coordinating with them for the pharma exports
India urges $1.3 tn annual climate grant
Intervening on behalf of like-minded developing countries (LMDCs), India said that developed countries need to commit to provide and mobilise at least $1.3 trillion every year in the New Collective Quantified Goal (NCQG) till 2030.
Over 600 mn cyberattacks daily, AI can secure devices
Microsoft is developing a password-free authentication process to eliminate the risk of breaches
Small businesses ramping up cybersecurity, thanks to AI
Rising AI adoption is helping cybersecurity providers hike their marketable base in India
