The sale of a stake in Cipla Limited is currently facing obstacles as potential buyers are hesitant to accept the valuation of INR 1.09 trillion ($13.1 billion) set by the founding family.
Negotiations between the family members and interested buyers, including companies in the industry and private equity firms, have stalled as the founders demand about INR 1,350 per share, which represents a premium of approximately 10% over the closing price on September 13, 2023.
Prominent scientist and businessman Yusuf Hamied, Cipla
Cipla’s promoter group, which is controlled by the family shareholder group, holds around 33% of the company’s shares, worth nearly $4 billion at the closing price on September 13, 2023. The family members have the option to sell some or all of their respective stakes in Cipla, but the decision has not yet been made public. The family members can still revise the asking price lower or decide not to proceed with the sale.
The sale has been in the works since July 27, 2023, when CNBC-TV18 reported that the Hamied family was likely to sell part of their stake. Since then, Cipla’s shares have risen by approximately 16%. Despite the ongoing deliberations, no final decision has been made on the deal. A spokesperson for the company has not responded to requests for comment.
In summary, the sale of a stake in Cipla Limited is currently facing challenges due to the valuation set by the founding family. The decision to sell some or all of their respective stakes in the company has not yet been made public, and negotiations with potential buyers have stalled.
