The proposed deal is predicted to worth Zydus Animal Well being and Investments (Zydus AHL) at Rs 2,500 crore, or about $350 million, they mentioned. Non-binding bids might be submitted by finish of February and the due diligence will begin after that, one of many sources advised ET.
The proposed sale is a part of Cadila Healthcare’s broader technique to cut back debt after it borrowed extra to assist finance its Rs 4,595-crore acquisition of Heinz India’s shopper wellness enterprise in 2019. Cadila Healthcare had consolidated debt of Rs 8,000 crore on the finish of March 2020.
When contacted, a Zydus Cadila spokesperson denied any plans to promote the veterinary well being enterprise.
A spokesperson with Temasek declined to remark, whereas emails despatched to CVC Capital, Warburg Pincus and Multiples Alternate Asset Administration didn’t elicit any responses until press time Sunday. With operations spanning greater than six a long time, Zydus AHL holds management positions in animal antimicrobials, vitamin injections, anti-mastitis, corticosteroids, hormones and intra-mammary segments.