Advent to buy 'significant' stake in India's Suven Pharma, explore merger (updated)

Suven Life Sciences

26/12/2022 03:26

(Adds details on deal)
       BENGALURU, Dec 26 (Reuters) - Private equity major
Advent International will buy a "significant" stake in Suven
Pharmaceuticals Ltd  SUVH.NS  from its promoter Jasti family and
consider merging it with a peer in its portfolio, the Indian
drugmaker said on Monday.
    Suven did not specify a deal value or the stake Advent would
acquire but said the private equity firm would also make an
additional open offer for around 26% of the outstanding equity
shares held by public shareholders.
    The Hyderabad-based company also said Advent intends to
explore merging Suven with its wholly owned Cohance Lifesciences
to build a company that specializes in active pharmaceutical
ingredients as well as contract development and manufacturing
businesses.
    "(Advent's) experience and resources will launch the next
phase of growth for Suven... It will help us offer a broader set
of services," Suven Managing Director Venkateswarlu Jasti said
in a statement.
    As of last close, Suven had a market capitalization of 126
billion Indian rupees ($1.52 billion) with promoter Jasti
Property and Equity Holdings Private Ltd owning 60% of the
shares, according to data from Refinitiv.
($1 = 82.7800 Indian rupees)
 (Reporting by Nandan Mandayam in Bengaluru and Praveen
Paramasivam in Chennai; Editing by Krishna Chandra Eluri)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))