BENGALURU: Biocon Biologics, a subsidiary of Biocon, on Tuesday announced that it has successfully completed its multi-billion-dollar acquisition of the global biosimilars business of its partner Viatris Inc.
As a part of completing the transaction, Biocon Biologics has issued Compulsorily Convertible Preference Shares (CCPS) in the company valued at $1 billion, equivalent to an equity stake of at least 12.9% on a fully diluted basis, and made an upfront cash payment of $2 billion to Viatris.
To fund the upfront payment, Biocon Biologics has secured $1.2 billion of Sustainability Linked Loan (SLL). The balance has been funded through an equity infusion of $650 million by Biocon Limited and $150 million by Serum Institute Life Sciences (SILS), the company said in a statement.
Biocon Limited’s funding comprises $230 million from existing reserves and $420 million through mezzanine financing. Biocon is in the process of securing investments to retire the mezzanine financing, post deal closure. Post the conclusion of the Viatris and Serum transactions, Biocon Limited’s stake in Biocon Biologics will be 68%. Biocon Biologics and Viatris have obtained all applicable approvals from key global regulators.