Aurobindo Pharma shares rose 4.5% on September 11 after the Financial Times reported that private equity firm GTCR has struck a 4.1 billion euro ($4.8 billion) deal to buy Czech generic drugmaker Zentiva from Advent International.
The deal has been finalised and is expected to be announced within days, the newspaper said.
Boston-based Advent bought Zentiva, which makes a wide range of generic and over-the-counter drugs, from French pharmaceutical giant Sanofi for 1.9 billion euros in 2018.
At 12:30 pm on September 11, Aurobindo Pharma shares on NSE were trading 4.5% higher at Rs 1,097 apiece. The 52-week high of the stock is Rs 1,592 and 52-week low is Rs 1,010. The market capitalistion of the stock is Rs 62,800 crore.
Zentiva, which traces its roots to the 15th century, operates in more than 30 countries and employs more than 5,000 people and has manufacturing sites in the Czech Republic, Romania and India, according to its website. It was nationalised in 1946 and then management acquired a majority share in 1998, establishing a new focus on branded generic medicine.
Economic Times newspaper reported last month that Aurobindo Pharma was leading the race to buy Zentiva for up to $5.5 billion.
However, Aurobindo, in a statement to exchanges, later said no binding agreements have been signed by the company's board.
Bloomberg News reported in November that Advent was working with Goldman Sachs Group Inc. and boutique adviser PJT Partners Inc. to explore a possible sale of Zentiva
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