HYDERABAD: Suven Pharmaceuticals on Monday said its promoters, the Jasti family, are selling their 50.1% stake in the company to global private equity player Advent International for a consideration of over Rs 6,300 crore.
As part of the share purchase agreement inked on Monday, Advent will be acquiring 12,75,37,043 equity shares of the Hyderabad-based CDMO (contract development and manufacturing organisation) at a price of Rs 495 per share, the company said in a regulatory filing. The deal is subject to the necessary regulatory approvals and conditions.
As of quarter ended September 30, 2022, the promoter and promoter group held 60% stake in the company with the remaining 40% held by the public.
As part of the transaction, Advent on Monday also announced an open offer to acquire an additional 26% stake (6,61,86,889 shares) in the company for Rs 495 per share from the public shareholders through its manager Kotak Mahindra Capital Company Ltd.
In its statement, Advent said it has entered into a definitive agreement to acquire a significant stake in Suven Pharmaceuticals from the Jasti family, subject to regulatory approvals and conditions.
Advent also said that post the completion of the acquisition, it will explore the merger of its portfolio company Cohance Lifesciences with Suven as part of its strategy to build a leading end-to-end CDMO and merchant API player servicing the pharma and specialty chemical markets.
Suven Pharmaceuticals Ltd managing director Venkateswarlu Jasti said the move would benefit Suven immensely as Advent was the ideal partner thanks to its deep healthcare expertise and global network of professionals and experts.
“Their experience and resources will launch the next phase of growth for Suven pharma. The proposed collaboration with Cohance is a win-win for Suven and its public shareholders. It will help us offer a broader set of services and multi-sites to our customers,” Jasti said.
Jasti said Suven had built a business with industry leading growth and margins and had cultivated “excellent relationships with multiple global innovator companies backed by deep R&D capabilities and demonstrated a track record of execution and delivery excellence.”
Terming the deal as a win-win transaction, Advent International managing partner & head for India Shweta Jain said Advent plans to build on Suven’s capabilities and make it one of the global leaders in the CDMO space.
Suven Pharma, which was demerged in 2020 from its parent entity, Suven Life Sciences, is a key player in the India CDMO space with a strong pipeline of Phase 3 and late Phase 2 molecules with over 100 active projects.
