Glenmark Pharmaceuticals Ltd. is in talks to sell a stake of between 25% and 30% in its newly spun-off active pharmaceutical ingredient products division to private equity firm PremjiInvest, The Economic Times of India reported.
Mumbai-based Glenmark intends to sell a minority shareholding in Glenmark Life Sciences Ltd. for about $150 million, valuing the unit at between $600 million and $700 million, the report said.
Private equity fund True North failed to agree on the business' valuation, leading to Glenmark opening discussions with other PE funds such as Carlyle Group LP and Goldman Sachs Group Inc.'s PE arm, the report noted. None of these talks advanced to reaching a deal.
The stake sale is part of Glenmark's debt-reduction plan to spin off noncore assets into new units and reduce the company's shareholding in these businesses.
Avendus Capital is Glenmark's adviser on the transaction.
