Multinational pharmaceutical majors such as Sanofi, Novartis and GSK are in the race to buy out the domestic formulations business of debt-ridden Elder Pharmaceuticals. While Sanofi and GSK have put in non-binding bids, Novartis has signed a non-disclosure agreement. Sanofi is understood to have appointed HSBC as its investment banker. Private equity funds have also started negotiations to join the bidding process, according to three people close to the transaction. Elder Pharma, mired in huge debts, has mandated Japanese Investment bank Nomura and consultancy firm Ernst & Young to find a buyer through a negotiated transaction. The company’s advisor E&Y has completed vendor due diligence which was undertaken to ascertain the real value of assets that are being sold. (The Economic Times)
CCEA clears 7.64% National Fertilisers stake sale; to rake in over Rs 125 crore: The government on Thursday cleared the proposal for 7.64% stake sale in National Fertilisers Ltd (NFL), which is expected to fetch around Rs 125 crore ($22.44 million) to the exchequer. The CCEA has approved disinvestment of NFL though the offer for sale (OFS) route. At present, the government holds 97.64% stake in the target company. The Department of Disinvestment (DoD) has approached the CCEA for stake sale in the company through four merchant bankers IDBI Capital Market Services, Avendus Capital, SBI Cap and Kotak Investment Banking were in fray for managing the stake sale of NFL. (The Economic Times)
Jindal Said to be in talks for Liberia Iron Ore: Jindal Steel & Power Ltd. (JSP) is in talks to acquire an iron ore mine in Liberia as environmental hurdles at home prompt it to look overseas. The target is the Wologizi mine and negotiations are on with the government of the West African nation for approvals. A final decision is expected by the end of September, the person said. Jindal Steel, which scrapped purchase talks with Afferro Mining Inc. (AFF) in March and wrote off more than $90 million after abandoning a Bolivian iron ore project last year, is betting on Liberia’s need for foreign investment to grow a postwar economy. (Bloomberg)
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