Magnum Said to Weigh Sale of Stake in Generic Drugmaker Generis

Magnum, a buyout firm focusing on Spain and Portugal, is considering the sale of Portuguese generic drugmaker Generis Farmaceutica SA, according to people with knowledge of the matter.

Magnum is working with Jefferies Group to sell its controlling stake in Generis, which may fetch 150 million euros ($164 million) to 180 million euros, said the people, who asked not to be identified because the matter was private. The sale process, which is likely to start after the summer, may attract interest from both private-equity firms and drugmakers, the people said.

Investors are returning to Portugal as the country’s economy improves more than one year after it exited a bailout program from the European Union and the International Monetary Fund. The Portuguese government forecasts the economy will expand 1.6 percent this year and 2 percent in 2016. It grew 0.9 percent in 2014, ending a three-year recession.

Joao Talone, a partner at Magnum, declined to comment on the possible sale. A representative for Jefferies declined to comment.

Magnum was founded in 2006 by three partners, including Angel Corcostegui, the former chief executive officer of Banco Santander SA, and Talone, EDP-Energias de Portugal SA’s ex-CEO. Investors in the fund include domestic and international pension funds, family offices and savings banks.

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