MUMBAI: Private equity firm Advent International will buy a 50.1% stake in Suven Pharmaceuticals for Rs 6,311 crore from its promoters Jasti family. The Hyderabad-based company, which is a leader in contract development and manufacturing organisation (CDMO), said Advent International will make an additional open offer for up to 26% of the outstanding equity shares of the company from public shareholders at a price of Rs 495 per share. The open offer is for a total consideration of Rs 3,276 crore.
“The acquirer has entered into a share purchase agreement dated December 26, 2022, with the seller, pursuant to which the acquirer has agreed to acquire from the seller 12,75,37,043 equity shares of the target company representing 50.1% of the voting share capital, completion of which is subject to the satisfaction of certain conditions precedent under the share purchase agreement (SPA), said Suven Pharmaceuticals in a regulatory filing to the BSE.
“The sale of such equity shares under SPA is proposed to be executed at a price of `495 per equity share.” Post the completion, Advent intends to explore merger of its portfolio company, Cohance Lifesciences with Suven, to build a leading end-to-end CDMO and merchant API player servicing the pharma and specialty chemical markets.
The merger will be evaluated by the board taking into consideration strategic rationale and accretiveness to Suven’s public shareholders and will be subject to regulatory approvals and other customary approvals.
“Advent is the ideal partner for us, with deep expertise in healthcare and a global network of professionals and experts. Their experience and resources will launch the next phase of growth for Suven pharma.
This move will benefit Suven platform immensely. The proposed collaboration with Cohance is a win-win for Suven and its public shareholders,” said Venkateswarlu Jasti, managing director at Suven Pharmaceuticals. Suven was demerged from its parent entity, Suven Life Sciences, in 2020, and has been growing revenues at over 20% over the last four years and expanded its operating profit margins by over 43%. “We plan to build on Suven’s capabilities and make it one of the global leaders in the CDMO space.
We intend to explore a merger of Cohance with Suven in a manner which is synergistic and accretive for Suven’s shareholders.” said Shweta Jalan, Managing Partner and head of Advent International in India. “Our vision for Suven is to build a $1 billion global leader, ,” said Pankaj Patwari, MD at Advent International.
Key numbers of the deal