Advent International to Buy ‘Significant’ Stake in Suven Pharmaceuticals
Bangalore:
Private equity giant Advent International will buy a 50.1% stake in Suven Pharmaceuticals Ltd from its promoters, the Jasti family, and consider merging it with one of its peers in its portfolio, the Indian drugmaker said on Monday.
Advent will conduct an additional public offer of up to 26 per cent of the voting share capital held by public shareholders at Rs 495 per share, Suven said. Shares were up 4.8 percent at Rs 520 in morning trade.
The Hyderabad-based company also said Advent intends to explore merging Suven with its wholly-owned Cohance Lifesciences to create a company specializing in active pharmaceutical ingredients and contract development and manufacturing.
“(Advent’s) experience and resources will unlock the next phase of growth for Suven…which will help us deliver a wider range of services,” Suven managing director Venkateswarlu Jasti said in a statement.
Suven, which was valued at 126 billion Indian rupees ($1.52 billion) as of last close, is 60 percent owned by promoter Jasti Property and Equity Holdings Private Ltd, according to Refinitiv data.
($1 = 82.7800 Indian Rupees)
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