Cabinet clears Advent's acquisition of Suven Pharma for Rs 9,589 crore

economictimes.indiatimes.com:

FDI proposal for foreign investment of up to Rs.9589 crore in Suven Pharmaceuticals Limited by private equity firm Advent International through its Cyprus based Berhyanda Ltd.

Advent International has entered into a definitive agreement in December last year to acquire a 50.1% stake in Hyderabad-based Suven Pharmaceuticals, a listed contract research and manufacturing services (CRAMS) firm promoted Venkat Jasti and his family members for Rs 6,313 crore paying ₹495 per share.

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Advent will also launch an open offer for an additional 26% of the company.

The government in a statement said the aggregate foreign investment may increase up to 90.1% in Suven Pharmaceuticals.
The statement added the approval has been granted after examination of the proposal by departments concerned, RBI and SEBI and is subject to the fulfillment of all rules and regulations as applicable in this regard.

The entire investments in foreign investor company, Berhyanda are held by Advent Funds, which pool investments from various Limited Partners (LPs). The Advent Funds are managed by US-based Advent International Corporation.

Advent International Corporation, set up in 1984 has made investments of about USD 75 billion in 42 countries. Advent India started investments in India in 2007 and so far it has invested about Rs 34000 crores in 20 Indian companies across healthcare, financial services, industrial manufacturing, consumer goods and IT services sectors.

The approved investment aims to generate new jobs, capacity expansion of the Indian