Carlyle eyes stake in Piramal pharma

MUMBAI: Global private equity major The Carlyle Group has emerged as the frontrunner to buy a significant stake in Ajay Piramal owned Piramal Group’s pharma businesses for close to ₹3,500 crore. Three people aware of the development confirmed this, adding that the proposed stake sale has attracted bids from several other global investors.

“We do not comment on market speculations,” said a Piramal Group spokesperson.

On April 7, Mint reported that

American private equity giants TPG Capital and KKR & Co. Inc. too were in the fray, looking to invest ₹3,500-4,000 crore for acquiring a 20% stake in Piramal Group’s proposed pharmaceutical entity that would combine the group’s pharma businesses.

As per Piramal’s current strategy, the pharma businesses will be demerged from Piramal Enterprises Ltd and combined into a new entity, 20% of which will be owned by Carlyle and possibly another private equity investor, while at least 25% will be owned by the public and the remainder will remain with the promoters.

Investment bank Rothschild is advising Piramal on this transaction. The stake sale, once completed, may value the Piramal Group’s overall pharma business at approximately $2.5 billion.

Piramal Group has been in discussions with several potential investors for a stake sale in pharma business over the past few months.

THE STAKE SALE, ONCE COMPLETED, MAY VALUE PIRAMAL GROUP’S OVERALL PHARMA BIZ AT APPROXIMATELY $2.5 BN