- 06 Sep 2022
- ICICIdirect Research
Biocon plans to sell stake in SyngeneBIOCON - 202 Change: -0.90 (-0.44 %)
News: According to media sources, Biocon is likely to sell a portion of its 69.9% stake in Syngene International in a block deal on the open market. The deal will most likely take place at a discount of up to 5%.
View: Biocon entered into a definitive agreement to acquire Viatris biosimilars business for US$3.335 billion, including cash up to US$2.335 billion and compulsorily convertible preference shares (CCPS) in Biocon Biologics (BBL) valued at US$1 billion(12.9% equity stake). Cash payment of US$2 billion will be funded by US$800 million raised through equity infusion in BBL while the remainder will be funded by debt. Equity infusion of US$800 million will see participation from Serum, Biocon and other private equity investors and Biocon is diluting its stake in Syngene to fund the Viatris deal, which is expected to be closed by September, 2022.