Suven Pharmaceuticals’ promoters, the Jasti family, will sell 50.1 percent of the company to global private equity investor Advent International for Rs 6,313.08 crore. Advent International, through its manager Kotak Mahindra Capital Company Ltd, has announced an open offer to acquire a further 26% stake in the company from public shareholders, with a total outlay of Rs. 3,276.25 crore if fully subscribed.
The offer was triggered by Advent’s share purchase agreement with the promoters to acquire over 12.75 crore shares, representing a 50.1 percent stake in Suven Pharmaceuticals for $495 per equity share. Advent proposed to acquire up to 6,61,86,889 equity shares, constituting 26% of the voting share capital, through an open offer for $495 per share. Advent said in a statement that it has entered into a binding agreement to acquire a substantial stake in Suven Pharmaceuticals, subject to regulatory approvals and conditions.
Advent also stated that it plans to investigate the merger of portfolio company Cohance with Suven in order to create a leading end-to-end Contract Development and Manufacturing Organization (CDMO) and merchant Active Pharmaceutical Ingredient (API) player serving the pharma and specialty chemical markets.