Private Equity News & Analysis

Newbridge and Temasek get 100 % return from Matrix

Singapore’s Temasek Holdings and Newbridge Capital, which together hold a combined 38 percent stake in India’s Matrix Laboratories, stand to make about 100 percent return on the pharmaceutical bet they made in May 2004.

By
Sharon Lim
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Singapore’s Temasek Holdings and Newbridge Capital, which together hold a combined 38 percent stake in India’s Matrix Laboratories, stand to make about 100 percent return on the pharmaceutical bet they made in May 2004.

Temasek Holdings, the investment arm of the Singapore government, and Newbridge Capital, a US private equity firm, stand to make about 100% return on their investment in Matrix Laboratories, an Indian pharmaceutical company, according to C. Ramakrishna, a director at Matrix.

Mylan Laboratories, a New York-listed rival, is looking to acquire up to 71.5 percent of Matrix in a transaction worth as much as $736 million (€574m), the company said in a statement. Under the deal, Temasek and Newbridge will sell their combined 38 percent stake for Rs306 a share.

“Temasek and Newbridge bought their combined stake at a rate of Rs150 a share in May 2004,” said Ramakrishna.

Following the acquisition of Matrix, Newbridge has agreed to invest approximately $93 million in the newly issued shares of Mylan common stock. Temasek has yet to confirm if it would invest approximately $46 million – as indicated in the statement, Ramakrishna told PEO. Temasek could not be reached for comment.

With its headquarters in Hyderabad, Matrix is a listed drug manufacturer that focuses on regulated markets such as the US and Europe. Mylan is a US pharmaceutical company with production facilities in West Virginia, Vermont, Illinois, Texas and Puerto Rico.