Advent International has emerged as the frontrunner to buy Hyderabad-based Suven Pharmaceuticals, a listed contract research and manufacturing services (CRAMS) company, edging past Blackstone in a keenly contested race, said people aware of the matter. Binding offers were submitted by both recently.
Promoters Venkateswarlu Jasti and his family split Suven Life Sciences in FY20, turning the CRAMS business into a separately listed company via a demerger. The promoters own 60% of the company, which has a market value of ₹12,547 crore, based on the Friday close.
Advent is negotiating to buy almost 51% of the company from the promoters and launch an open offer for an additional 26% that will also see a change in management control. If the open offer is fully subscribed, Advent may end up owning over 70% of the company. The private equity firm is likely to pay ₹6,000 crore for the promoters' stake. The Jasti family will retain a small stake.
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