Torrent Pharmaceuticals outbids Blackstone for Cipla; Bain eyes Accolade Wines

S&P Global Market Intelligence presents In Play Today, a periodic summary of potential private equity deal activity, including rumored transactions. This summary is based on information obtained on a best-efforts basis and may not be inclusive of all potential deal activity.

– Torrent Pharmaceuticals Ltd. is actively pursuing financing to acquire its fellow India-based drugmaker Cipla Ltd. from the latter's promoter family. The effort includes a potential $1 billion equity infusion from private equity firms such as Advent International Corp., Bain Capital LP, Warburg Pincus LLC and CVC Capital Partners Ltd., The Economic Times reported, citing people with knowledge of the matter.

Torrent is also in discussions with domestic shadow banks and mutual funds for $1.1 billion in share-backed promoter financing. It is also exploring foreign bank support, aiming for up to $4.23 billion in acquisition financing. Torrent, which aims to submit a binding bid in early October, is in pole position to buy Cipla after its nonbinding offer surpassed Blackstone Inc.'s bid by 30%, Business Standard reported.

Separately, Bain Capital LP has reached out to Dr. Reddy's Laboratories Ltd. to jointly bid for the Hamied family's stake in Cipla, The Economic Times reported. Dr. Reddy's is evaluating the opportunity to potentially counter Torrent's nonbinding bid. In addition to Blackstone, Torrent was competing with Baring Private Equity Asia EQT for the planned buyout. Bain is already in discussions with Torrent over financing the potential deal.

– Bain is considering a move to acquire distressed wine company Accolade Wines Australia Ltd., The Australian reported. This comes as Bain explores various opportunities to acquire distressed targets, including a debt deal with The Star Entertainment Group Ltd. and previous investments such as Virgin Australia Holdings Pty. Ltd. Bain may aim to take over Accolade by purchasing its debt at a price range of 25 cents to 35 cents on the dollar. The strategy might involve acquiring and potentially breaking up the company.

– SG Private Equity Co. Ltd. and LX Investment Co. Ltd. launched a sale process for the Korea Gold Exchange and its digital asset platform, Korea Gold Exchange Digital Asset Co. Ltd., Korea Times reported. NH Investment and Securities is managing the sale and will initiate contact with potential buyers in the week of Sept. 4. The sale involves full stakes in both entities. A special purpose company jointly owned by SG Private Equity and LX Investment holds 67.2% of the shares, while the remaining stake is divided between two individuals.

– Blackstone and Thomson Reuters Corp. are among investors selling approximately 28.3 million shares of London Stock Exchange Group PLC worth roughly $2.9 billion, Reuters reported, citing bookrunners for the deal. The consortium plans to sell a total of about 43.1 million shares in the London Stock Exchange through various methods.

– Viatris Inc. is in advanced discussions to sell its European consumer-health assets to CVC Capital-owned drugmaker Cooper Consumer Health, Bloomberg News reported, citing people familiar with the matter. CVC is the primary contender after other suitors withdrew, and a deal can potentially exceed $2.1 billion, according to the report.

– TPG Capital LP is exploring the potential sale of Greencross Ltd., with potential interest from Wesfarmers Ltd., The Australian reported. Jefferies is involved in the sale discussions for Greencross, which is valued at more than $3.5 billion and owns veterinary clinics and a pet care retail business. It remains uncertain whether TPG will sell the entire company or just the stake it retained after previously selling a 45% stake to AustralianSuper and Healthcare of Ontario Pension Plan.

– The Carlyle Group Inc. is looking at options to exit Jagex Ltd., with a potential valuation of up to $1.25 billion, Reuters reported, citing two people familiar with the matter. Carlyle, in collaboration with advisers at Morgan Stanley and Aream & Co., is considering a sale or listing of the UK-based video-games maker. While the process is in its early stages, the firm reportedly could target an auction toward the end of 2023.

– Fresenius Medical Care AG & Co. KGaA commenced the sale process for Cura Day Hospitals Group Pty. Ltd. through Citi, The Australian reported. Approximately 15 to 20 parties are reviewing the Australian day hospital business, with about five expected to be shortlisted for final bids in October or November. Cura's potential buyers include Ramsay Health Care Ltd., Intermediate Capital Group PLC and Crescent Capital Partners Management Pty. Ltd.

– Petershill Partners PLC is exploring acquisition opportunities to tap into high-growth segments of the alternative investment industry, an executive said on the company's first-half 2023 earnings call.

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