[Logcheck-devel] Avesthagen to raise $60 mn in complex deal from Cayman-based fund:To transfer a chunk of its biosimilar IPR to new company to f
Alvin Donovan
donovan at epfundspc.com
Sun May 13 19:28:30 UTC 2012
Avesthagen to raise $60 mn in complex deal from Cayman-based fund
To transfer a chunk of its biosimilar IPR to new company to facilitate fund raise
http://www.business-standard.com/india/news/avesthagen-to-raise-60-mn-in-complex-dealcayman-based-fund/473981/
Avesthagen, the Bangalore-based life-sciences company
is understood to be closing a complex fund raise of
$60 million from Cayman-based investment company Equity
Partners Fund (EPF). Avesthagen is banking on its
biosimilars portfolio for this funding.
Under the proposed funding, Avesthagen is expected to
form a new company, most probably in Switzerland, the
shares of which can be listed at the General Standard
of Stock Exchange in Frankfurt.
The new Swiss company is expected to hold an Indian entity
and in this Indian entity, Avesthagen will transfer eight
intellectual property assets pertaining to Avesthagen’s
biosimilar portfolio which comprises a substantial part
of Avesthagen Ltd’s value. It is understood that Hong
Kong-based Key Capital is advising Avesthagen on this
transaction. When Business Standard contacted Avesthagen
CMD Villoo Morawala Patell for her views on the funding,
she said they will be able to discuss aspects next week.
In all probability, a special private placement may be
entered into between Avesthagen Group Entity and EPF whereby
Avesthagen Group Entity will have the ability to draw down
the investment through the issuance of stock exchange-listed
shares to the Investor. Avesthagen would control the timing
and amount of any draw down subject only to a share trading
price and draw down limitation mechanism.
Avesthagen is going in for this structure to align with EPF
investment philosophy. EPF usually funds companies through
the purchase of the shares based on a small discount off a
value weighted average price formula and does not provide
upfront funding.
It is further understood that Avesthagen Group Entity may
draw down proceeds for working capital, general corporate
purposes, acquisitions, pass through, reverse merger or
takeover.
If Avesthagen succeeds in this complex fund raise, it will
add to the long list of its funding history. Avesthagen is
among the top few private equity funded companies having
raised funding from ICICI Ventures, Tata Group, Godrej,
Cipla, Danone, New York Life among others in various of
its projects.
Equity Parters Fund SPC seeks listed public companies
with good management teams to grow their companies through
organic expansion, acquisitions, consolidations/rollups.
Referral fees paid on success.
Please email me now at donovan at epfundspc.com and link with me
on linkedin/finroad to donovan at epfundspc.com
and http://twitter.com/AlvinDonovan so we can find out more about each other.
All the best,
Alvin Donovan
Managing Director
Equity Partners Fund SPC
http://equitypartnersfund.com/
My blog= alvindonovanblog.com
Join me on Linkedin http://sg.linkedin.com/in/alvindonovan
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Skype: alvindonovan
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