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Temasek Holdings, True North CPPIB look to buy stake in Biocon subsidiary, says report

Temasek Holdings, True North-CPPIB look to buy stake in Biocon subsidiary, says report

By CNBC-TV18 Aug 21, 2019 9:20:22 AM IST (Published)

The subsidiary of Kiran Mazumdar Shaw-owned Biocon may be valued at Rs 28,000 crore, the report said.

Singapore-based Temasek Holdings and domestic private equity fund True North along with Canadian Pension Plan Investment Board (CPPIB) are separately in talks with Biocon Biologics India Ltd, a wholly-owned subsidiary of Biocon Ltd, to acquire a minority stake in the company for about $300 million, The Economic Times reported, citing people aware of the matter.

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The subsidiary of Kiran Mazumdar Shaw-owned Biocon may be valued at Rs 28,000 crore, one of the sources told ET, however, the paper said it could not verify the claim independently. The value would be higher than the Rs 26,000 crore market cap of Biocon.
Biocon started off a recast in 2016, housing biologic assets in Biocon Biologics UK, followed by its first-ever approval to sell the biosimilar version of Trastuzumab, the mega cancer drug, in the US through partner Mylan, the report mentioned.
The board and shareholders of BBIL approved the acquisition of biosimilars from Biocon for Rs 578 crore in FY18, subject to regulatory approvals. As of March 31, BBIL was yet to commence commercial operations and had Rs 408.7 crore capital work-in-progress, the report added.
"The restructuring was aimed unlocking value in the future with a listing or PE investment, much like Syngene, Biocon’s listed subsidiary for contract drug manufacturing," the report said, adding that both Temasek and True North have been Biocon backers, having invested in Syngene as well.
If the deal goes through, it would mark True North's third investment in Mazumdar Shaw's company.
When contacted by the paper, Shaw, Temasek, CPPIB and True North refused to comment.
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