PE major Advent International is planning a merger of Suven with its Portfolio firm Cohance to build a leading end-to-end CDMO and merchant API player and tap the pharma and specialty chemicals segment.
Advent International; the Global private equity firm said in a statement on 26th December that it is acquiring a 50.01% stake in Hyderbad’s Suven Pharmaceuticals for a whopping Rs. 6,313 crores and plans to merge it with its portfolio’s firm Cohance Lifesciences. The promoter of Suven Pharmaceuticals i.e Jasti family will be left with only a 9.9% stake in the firm if the deal is successful and is still subjected to regulatory approvals.
Advent International also plans to launch an open offer for an additional 26% stake in Suven Pharmaceuticals at Rs. 495 shares each and if the open offer gets fully subscribed the total deal size would increase to Rs. 9,589 crores since Advent International will have to spend another Rs. 3,276 crores.
Suven Pharma Managing Director (MD) Venkateswarlu Jasti said in a conference call, “that the deal was expected to be closed in five to six months and the details of the proposed merger with Cohance were still being worked out, including what could be the share swap ratio”. It is to be noted that Mr. Jasti would cease to be the MD of the company once goes through and will provide only consultancy services as chief advisor for the company.
PE major Advent International is planning a merger of Suven with its Portfolio firm Cohance to build a leading end-to-end CDMO and merchant API player and tap the pharma and specialty chemicals segment.
Shweta Jalan, managing partner and head of Advent International in India said, “We are extremely pleased with this win-win transaction…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.”
Read More-Top Pharma Companies In India
