Actis Advisors and Sequoia Capital Advisors, who together hold a 70 percent stake in Paras Pharmaceuticals, an Indian medical company, are looking for $700 million for their share of the company, according to reports in India. Morgan Stanley has sought bids from Pfizer Inc, GlaxoSmithkline, Sanofi-Aventis, Daiichi Sankyo and Taisho Pharma.
(Reuters) – Morgan Stanley has sought bids from Pfizer Inc, GlaxoSmithkline , Sanofi-Aventis , Daiichi Sankyo and Taisho Pharma for the 70 percent stake held by private equity firms in unlisted Paras Pharmaceuticals, the Economic Times reported on Thursday.
The existing investors are said to be asking for about $700 million, valuing the company at $1 billion, the report said citing an unidentified source.
Morgan Stanley has approached international firms as it feels local companies may not be able to pay such a high price, the report said.
“A valuation of around 4,500 crore (45 billion rupees) is too stiff for local players,” the report quoted the source as saying.
Pfizer, Sanofi Aventis, GlaxoSmithKline, Paras Pharma and Morgan Stanley declined to comment while Daiichi Sankyo did not reply to an email, the report said.
Paras Pharma founder Girish Patel and his family own the rest 30 percent in the firm.
(Reporting by Kaustubh Kulkarni; Editing by Sunil Nair)