HYDERABAD: The Cabinet Committee on Economic Affairs (CCEA) has approved a foreign direct investment (FDI) of up to Rs 9,589 crore in the Hyderabad-based Suven Pharmaceuticals Ltd by Cyprus-based Berhyanda Ltd for a 76.1% stake.
The Cyprus-based entity is controlled by Advent Funds, which are managed by a US-based private equity player Advent International Company.
The CCEA, which is chaired by Prime Minister Narendra Modi, gave its nod on Wednesday after the proposal was evaluated and approved by various departments and regulatory bodies such as the Securities & Exchange Board of India (Sebi), the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
The deal required government approval as currently, under the existing policy, foreign direct investment of up to 74% only is allowed in brownfield pharmaceutical projects through the automatic route. However, approval is subject to compliance with all applicable rules and regulations.
The CCEA nod came eight months later Suven PharmaThe company’s promoters, the Jasti family and the entities they own, signed a definitive agreement with Advent International to sell their 50.1% stake in the CDMO (contract development and manufacturing organization) player for consideration of Rs 6,300 crore at a price of Rs 495 per share.
The Jasti family and the promoter group hold 60% stake in Suven Pharmaceuticals, which is listed on the Bombay Stock Exchange and National Stock Exchange, as of the quarter ended June 30, 2023, while the remaining 40% is held by the public.
Advent will make an open offer to acquire an additional 26% stake in the company from public shareholders, bringing its total stake in Suven Pharma to 76.1% and the stake could even be increased to 90.1%.
Advent had previously said that following the completion of the acquisition, it would explore merging its portfolio company Cohance Lifesciences with Suven as part of its strategy to build a leading end-to-end CDMO and trading API player that serves the pharmaceutical and specialty chemical sectors. markets.
The Cyprus-based entity is controlled by Advent Funds, which are managed by a US-based private equity player Advent International Company.
The CCEA, which is chaired by Prime Minister Narendra Modi, gave its nod on Wednesday after the proposal was evaluated and approved by various departments and regulatory bodies such as the Securities & Exchange Board of India (Sebi), the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
The deal required government approval as currently, under the existing policy, foreign direct investment of up to 74% only is allowed in brownfield pharmaceutical projects through the automatic route. However, approval is subject to compliance with all applicable rules and regulations.
The CCEA nod came eight months later Suven PharmaThe company’s promoters, the Jasti family and the entities they own, signed a definitive agreement with Advent International to sell their 50.1% stake in the CDMO (contract development and manufacturing organization) player for consideration of Rs 6,300 crore at a price of Rs 495 per share.
The Jasti family and the promoter group hold 60% stake in Suven Pharmaceuticals, which is listed on the Bombay Stock Exchange and National Stock Exchange, as of the quarter ended June 30, 2023, while the remaining 40% is held by the public.
Advent will make an open offer to acquire an additional 26% stake in the company from public shareholders, bringing its total stake in Suven Pharma to 76.1% and the stake could even be increased to 90.1%.
Advent had previously said that following the completion of the acquisition, it would explore merging its portfolio company Cohance Lifesciences with Suven as part of its strategy to build a leading end-to-end CDMO and trading API player that serves the pharmaceutical and specialty chemical sectors. markets.
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