The proposed deal is expected to value Zydus Animal Health and Investments (Zydus AHL) at Rs 2,500 crore, or about $350 million, they said. Non-binding bids will be submitted by end of February and the due diligence will start after that, one of the sources told ET.
The proposed sale is part of Cadila Healthcare’s broader strategy to reduce debt after it borrowed more to help finance its Rs 4,595-crore acquisition of Heinz India’s consumer wellness business in 2019. Cadila Healthcare had consolidated debt of Rs 8,000 crore at the end of March 2020.
When contacted, a Zydus Cadila spokesperson denied any plans to sell the veterinary health business.
A spokesperson with Temasek declined to comment, while emails sent to CVC Capital, Warburg Pincus and Multiples Alternate Asset Management did not elicit any responses till press time Sunday. With operations spanning more than six decades, Zydus AHL holds leadership positions in animal antimicrobials, vitamin injections, anti-mastitis, corticosteroids, hormones and intra-mammary segments.
