The sale of a stake in Cipla Ltd. is in jeopardy as potential buyers have balked at the 1.09 trillion rupee ($13.1 billion) valuation members of the founding family are targeting for the Indian firm in a deal, according to people familiar with the matter.
Negotiations between the family members and prospective buyers, including companies in the industry and private equity firms, are no longer moving forward, as the founders are demanding about 1,350 rupees per share, the people said. The price represents a premium of about 10% over Wednesday’s close, according to Bloomberg calculations.
The family shareholder group, known in India as the promoter group, controls around 33% of Cipla’s shares, which are worth nearly $4 billion at Wednesday’s closing price. Cipla shares have climbed about 16% since CNBC-TV18 reported on July 27 the Hamied family was likely to sell part of their stake.
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