Advent to Buy Majority Stake in Suven Pharma for $762 Million
Advent International Corp., one of the world’s largest private equity firms, will purchase a controlling stake in India’s Suven Pharmaceuticals Ltd. for at least 63.13 billion rupees ($762 million), triggering an open offer to buy further shares in the family-run firm.
The buyout firm agreed to acquire 50.1% of Suven from the Jasti family, according to an exchange filing Monday. The stake purchase also set off a mandatory offer to minority shareholders from Advent under which it can buy as much as 66.19 million shares — or another 26% stake — for 495 rupees each, the same price it is paying the founders for the majority stake.
Suven rose as much as 4.9% during trading in Mumbai on Monday before paring almost all of those gains to trade at 497 rupees. India’s benchmark S&P BSE Sensex advanced as much 0.8%.
For Advent, which has made more than 50 health care investments in 16 countries over the past three decades, the Suven deal adds to its growing portfolio in India, where it has bought majority stakes in the engineering services company Encora and consumer durables firm Eureka Forbes.
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Advent will also explore a a potential merger of Suven, based in the Indian pharmaceutical hub of Hyderabad, with its portfolio firm, Cohance Lifesciences, to build out a company specializing in contract development, manufacturing and active pharmaceutical ingredients.
Dec. 14, 2022