Indian biopharmaceutical company Biocon has sold upto 5.1 percent stake in the company for a price band of Rs 550 to Rs 573.
Biocon has sold up to 5.1 percent stake in Syngene International for a price band of Rs 550 to Rs 573 to fund the equity component of the $3.3 billion acquisition of biologics business from Viatris.
The shares of contract research and manufacturing firm Syngene International climbed 3.5 percent in early trade on Tuesday, September 6, after 2.3 crore shares of the company, worth 5.7 percent equity, changed hands for Rs 564 per share.
Biocon stock opened 0.8 percent higher and subsequently fell 0.3 percent on Tuesday.
likely to sell a portion of its 69.99 percent stake in Syngene International.
Biocon has said that the company is on track to close the Viatris deal signed in 2022. As per the deal, for closing Biocon Biologics will pay $2 billion to Viatris. Of these 2 billion, the company will receive $50 million from Viatris for capex, and $1.8 billion have been received from debt commitment. $335 million will be deferred payment that the company will pay mainly via internal cash generation.
The remaining $800 million will be generated via equity commitment — this $800m equity component is the reason Biocon is selling stake in Syngene.
$550 million will be from old and new PE investors including Serum that is looking to raise stake in Biocon Biologics.
Biocon will explore fundraising options such as selling stake in Syngene to raise the needed remaining $250 million.
Apart from Biocon promoters, Biocon Limited Employee Welfare Trust holds 0.29 percent stake in Syngene International, taking the total stake to about 70.29 percent.
Of the 12 analysts tracking Syngene, 75 percent give a 'buy' rating while another eight percent have given a 'hold' on the shares of the company. 17 percent have a 'sell' recommendation.
First Published: IST