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.

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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.