Advent announces Open offer for Suven Pharma at Rs. 495 per share

An Open Offer is being made for acquisition of up to 6,61,86,889 fully paid-up equity shares of face value of INR 1 (Indian Rupee One only) each ("Equity Shares") representing 26.00% of the Voting Share Capital of Suven Pharmaceuticals Limited (Target Company) from the Public Shareholders of the Target Company at a price of INR 495/- per Equity Share aggregating to a total consideration of ₹ 3276,25,10,055/- (assuming full acceptance) ("Offer Size"), by Berhyanda Limited (the "Acquirer") along with Berhyanda Midco Limited ("PAC 1") and Jusmiral Midco Limited ("PAC 2") (PAC 1 and PAC 2 together, the "PACs"), in their capacity as persons acting in concert with the Acquirer for the purpose of the Open Offer.

The Acquirer, in due course of time, intends to explore a potential composite scheme of arrangement pursuant to which Cohance Lifesciences Limited, ZCL Chemicals Limited, and Avra Laboratories Private Limited (collectively, "Cohance") may merge with and into the Target Company, subject to receipt of requisite corporate and other approvals and in compliance with applicable laws after the completion of the Open Offer and the Underlying Transaction.

Cohance Lifesciences Limited (www.cohance.com), wholly owned by Advent International Corporation, was formed to create a new brand identity for its integrated Contract Development & Manufacturing Organization ("CDMO") and Merchant Active Pharmaceutical Ingredients ("API") platform, to bring together three Advent portfolio companies - Cohance Lifesciences Limited (RA Chem Pharma Limited was merged into this company), ZCL Chemicals Limited and Avra Laboratories Private Limited. It has a total proforma revenue of ~INR 1,280 crores (FY 2021-22). It has complex chemistry capabilities, including expertise in controlled substances, Antibody Drug Conjugates, Highly Potent Active Pharmaceutical Ingredients, etc. It has a diversified mix of customers and molecules with a balanced presence across regulated and high quality emerging markets. In the CDMO segment, now contributing ~30% business mix, Cohance has built relationships across 25+ pharma and specialty chemicals innovators given its ability to handle 9 complex, multi-step chemistries across the lifecycle of a molecule. Overall, Cohance has 7 manufacturing facilities across India with focus on safety, quality and regulatory compliance.

The potential merger of Target Company and Cohance is likely to result in an integrated platform in terms of products, geographies, and operations to deliver scale, growth and synergies. Combined entity would have diverse business lines with access to customers across geographies as well as drive structural growth in terms of development, Pharma CDMO, specialty chemicals CDMO, merchant API as well as other value added services. The potential merger is likely to provide end-to-end capabilities from Phase 1 to commercial patented molecules covering the entire value chain of a molecule's lifecycle. Combined entity is also likely to have robust supply chain with multi-site operations for customers and scaled up API facilities, thereby realizing economies of scale as well as have diversified business mix compared to its peers.

Shares of Suven Pharmaceuticals Limited was last trading in BSE at Rs. 498.20 as compared to the previous close of Rs. 482.35. The total number of shares traded during the day was 36023 in over 1795 trades.

The stock hit an intraday high of Rs. 505.70 and intraday low of 485.55. The net turnover during the day was Rs. 18010527.00.

Source : Equity Bulls

Keywords

SuvenPharmaceuticals INE03QK01018 Acquisition OpenOffer INR495 AdventGroup