BENGALURU:
Private equity giant Advent International is buying a 50.1% stake in Suven Pharmaceuticals Ltd from its promoter Jasti family and is considering merging it with a peer in its portfolio, the Indian drugmaker said Monday.
Suven said Advent would make an additional open offer for up to 26% of the voting share capital held by public shareholders at a price of 495 rupees per share. Shares rose as much as 4.8% to 520 rupees in early trading.
The Hyderabad-based company also said Advent plans to merge Suven with its wholly owned Cohance Lifesciences to build a company specializing 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 wider range of services,” Venkateswarlu Jasti, general manager of Suven, said in a statement.
According to Refinitiv data, Suven had a market capitalization of 126 billion Indian rupees ($1.52 billion) at the latest close, with promoter Jasti Property and Equity Holdings Private Ltd holding 60% of the shares.
($1 = 82,7800 Indian Rupees)
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