Edelweiss fund to back Matrix Lab founder's buyout of Viatris API biz
Kotak is lending $150 million (₹1,250 crore) under a mezzanine debt facility to Prasad at 18-20% and arranging an additional $300 million from other lenders including Edelweiss Domestic Performing Credit Fund, two people close to the development said. The Edelweiss fund is lending the money, a senior debt facility, at 10-11%.
Mumbai: A fund managed by Edelweiss Alternatives has committed ₹200 crore to a being arranged by Kotak Strategic Situations Fund to finance Matrix Laboratories founder Nimmagadda Prasad's acquisition of the active pharmaceutical ingredients (API) business of American pharma firm Viatris.Kotak is lending $150 million (₹1,250 crore) under a mezzanine debt facility to Prasad at 18-20% and arranging an additional $300 million from other lenders including Edelweiss Domestic Performing Credit Fund, two people close to the development said. The is lending the money, a senior debt facility, at 10-11%.
The target is to close the acquisition by April 30, but it may get extended by a couple of weeks, the people said. The deal was announced in October last year.
A spokesperson for Edelweiss declined to comment, while a Kotak spokesperson and Prasad did not respond to requests for comment.
Kotak Strategic Situations Fund is part of the Kotak Group's alternative assets management division.
It has been actively working on arranging $300 million from various lenders, including private credit funds, to support the acquisition, the people said.
Under the deal with Viatris, Prasad's Iquest Enterprises has agreed to buy three manufacturing sites and an R&D lab in Hyderabad, three manufacturing facilities in Visakhapatnam and third-party API sales.
While the financial terms of the deal were not disclosed, ET reported last year that Viatris was seeking a valuation of $600-700 million for the API business.
This acquisition marks the return of Prasad to the pharma business after 17 years. He sold Matrix Laboratories in 2006 to Mylan NV (now Viatris) for an undisclosed amount.
Source: Stocks-Markets-Economic Times
