Fosun Pharma Industrial Pte will reduce its stake in India’s Gland Pharma Ltd through block deals as it is unable to offload it in one go.

The company will sell 5% of the drugmaker for about $172 million through block trading, according to terms of the deal obtained by Bloomberg News. It has offered 8.2 million shares at a floor price of Rs 1,750 each, a discount of 4.9% till the last close.

Fosun Pharma, a wholly owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co, owns about 58% of Gland Pharma, which has a market value of $3.6 billion.

The country will conduct more block sales in coming months to shore up its balance sheet unless buyout companies make a bid, according to people familiar with the matter.

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Fosun Pharma’s high valuation expectations for Gland Pharma posed a hurdle to a possible sale to private equity firms, they said, asking not to be identified as discussing confidential information.

A representative for Fosun Pharma declined to comment, while a representative for Gland Pharma did not respond to requests for comment.

Gland Pharma specializes in injectable medicines such as antibiotics, oncology and cardiology treatments and has a presence in around 60 countries, including Australia, Canada, India and the US, according to its website.

Fosun Pharma acquired a 74% stake in Gland Pharma from a group including KKR & Co in 2017 for approximately $1.1 billion. The company was listed in Mumbai three years later. Shares of the Hyderabad-based company are up 82% in the past 12 months, but are down more than 55% from their 2021 peak.

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Shares of Gland Pharma Ltd ended at ₹1,847.65, up ₹0.050, or 0.0027% on the BSE.