The Foreign Investment Promotion Board (FIPB) has referred to the Cabinet Committee on Economic Affairs (CCEA) a proposal on the acquisition of Hyderabad-based pharmaceutical company Gland Pharma by Shanghai Fosun Pharmaceutical. The proposed foreign direct investment (FDI) involved in this deal is to the tune of Rs 4,315 crore, the finance ministry said on Monday.
According to the proposal placed before the FIPB, Gland Pharma is seeking approval for its initial acquisition of up to 86.08% by Shanghai Fosun Pharmaceutical — a public listed company incorporated in China — and subsequently, Fosun also has the contractual right to acquire 100% shares of Gland Pharma from the other shareholders of the company in one or more tranches.
The FIPB meeting took place on March 29. In a previous meeting, the FIPB had deferred a decision on this proposal. Earlier this month, the finance ministry had announced the FIPB approval to Baxter Healthcare’s proposal to acquire India-based Claris Injectibles in a deal involving FDI of Rs 4,020 crore.
The FIPB approved six proposals involving small FDI inflows, including one from PMC Group International involving an FDI of Rs 65 crore.
The board also deferred a decision on a proposal by Sistema Shyam TeleServices for the exit of the resident shareholders and transfer of their holdings to the existing foreign shareholders —Sistema Joint Stock Financial Corporation (Russia) and Federal Agency for the State Property Management (Rosimushchestvo) — thereby increasing the foreign shareholding in the company from existing 73.95% to 100% and also consequently increasing the foreign shareholding in its downstream company, Shyam Internet Services, to 100%.