Advent International to acquire significant stake in Suven Pharma from its promoters

Global private equity investor Advent International has said it is acquiring a significant stake in Suven Pharmaceuticals from its promoters, the Jasti family. The PE major said this will be followed with an open offer to acquire 26 per cent more in the listed contract development and manufacturing organisation from public shareholders, and also merge the company with investee company Cohance Lifesciences, as per an official statement.

The Advent statement said it has entered into a definitive agreement to acquire significant stake in Suven subject to regulatory approvals and conditions.

According to a PTI report, the acquisition is pegged at Rs 6,300 crore and that Advent had pipped rival Blackstone for the acquisition.

It intends to explore the merger of portfolio company Cohance with Suven to build a leading end-to-end Contract Development and Manufacturing Organization (CDMO) and merchant Active Pharmaceutical Ingredient (API) player servicing the pharma and specialty chemical markets, the Advent statement added.

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The merger will be evaluated by the board taking into consideration the strategic rationale and accretiveness to Suven's public shareholders, the statement said.

Suven Pharma in an exchange filing also informed that Advent International has entered into a definitive agreement to acquire a significant stake in the company.

"The Board of Directors of the Company have been informed by our Promoter, Jasti Property and Equity Holdings Private Limited (in its capacity as sole trustee of Jasti Family Trust), that they have executed a Share Purchase Agreement with Berhyanda Limited, a Cyprus based company on December 26, 2022," the filing read.

As part of the transaction, Advent International will make an open offer to acquire an additional 26 per cent of the outstanding equity shares of the company from the public shareholders.

"An Open Offer is being made for the acquisition of up to 6,61,86,889 fully paid-up equity sharesthe  of face value of Rs 1 each representing 26 per cent of the voting share capital..." the filing read.

“We are delighted to bring Advent into Suven Pharma as a strategic investor. We have built a business with industry leading growth and margins. We have cultivated excellent relationships with multiple global innovator companies backed by deep R&D capabilities and demonstrated a track record of execution and delivery excellence,” said Venkateswarlu Jasti, Managing Director, Suven Pharmaceuticals.

He said that Advent International's experience and resources will launch the next phase of growth for Suven Pharma. This move will benefit Suven platform immensely.

Zee Business in an exclusive report on December 12 had informed that Suven Pharmaceutical Limited's promoters are planning to sell their entire stake and give up management control.

Also Read: Exclusive: Suven Pharma promoters plan to sell entire stake