Advent International Corp, one of the world’s largest private equity firms, is set to purchase a controlling stake in India’s Suven Pharmaceuticals Ltd for at least 63.13 billion rupees (US$763.7 million), triggering an open offer to buy further shares in the family-run firm.
The buyout firm agreed to acquire 50.1 percent of Suven from the Jasti family, an exchange filing yesterday showed.
The stake purchase also set off a mandatory offer to minority shareholders from Advent under which it can buy as many as 66.19 million shares — or another 26 percent stake — for 495 rupees each, the same price it is paying the founders for the majority stake.
Suven’s stock rose by 4.9 percent during trading in Mumbai yesterday before paring almost all of those gains to trade at 497 rupees. India’s benchmark S&P BSE Sensex advanced by 0.8 percent.
“Our vision for Suven is to build a US$1 billion global leader, by executing effectively on the product pipeline, building new marquee customers, turbo-charging business development and scaling up manufacturing and R&D,” Advent managing director Pankaj Patwari said.
The firm would look to acquire other global businesses “to build capabilities and gain new customers’ access,” he added.
For Advent, which has made more than 50 healthcare 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 engineering services company Encora and consumer durables firm Eureka Forbes.
Advent would also explore a potential merger of Suven, which is based in the Indian pharmaceutical hub of Hyderabad, with its portfolio firm, Cohance Lifesciences Ltd, to build a company specialized in contract development, manufacturing and active pharmaceutical ingredients.
The rout in global stocks has kept the head of Advent’s India business, Shweta Jalan, increasingly busy because more deals are being routed into the private-equity space, she said in May.
She has steered clear of India’s fintech space, where start ups are too early-stage or too expensive for her firm’s strategy, which leans toward investments in late-stage cash-generating businesses.
Advent’s key investment areas would continue to be healthcare, consumer, financial services and information technology in India, she said at the time.
Suven founder Venkateswarlu Jasti would be party to the deal announced yesterday, but would not be selling the 2,000 shares he holds.
Jasti would resign from the company’s board and as its managing director on completion of the deal, although he might provide some consultancy services as a chief adviser.
AI SERVER DEMAND: ‘Overall industry demand continues to outpace supply and we are expanding capacity to meet it,’ the company’s chief executive officer said Hon Hai Precision Industry Co (鴻海精密) yesterday reported that net profit last quarter rose 27 percent from the same quarter last year on the back of demand for cloud services and high-performance computing products. Net profit surged to NT$44.36 billion (US$1.48 billion) from NT$35.04 billion a year earlier. On a quarterly basis, net profit grew 5 percent from NT$42.1 billion. Earnings per share expanded to NT$3.19 from NT$2.53 a year earlier and NT$3.03 in the first quarter. However, a sharp appreciation of the New Taiwan dollar since early May has weighed on the company’s performance, Hon Hai chief financial officer David Huang (黃德才)
The Taiwan Automation Intelligence and Robot Show, which is to be held from Wednesday to Saturday at the Taipei Nangang Exhibition Center, would showcase the latest in artificial intelligence (AI)-driven robotics and automation technologies, the organizer said yesterday. The event would highlight applications in smart manufacturing, as well as information and communications technology, the Taiwan Automation Intelligence and Robotics Association said. More than 1,000 companies are to display innovations in semiconductors, electromechanics, industrial automation and intelligent manufacturing, it said in a news release. Visitors can explore automated guided vehicles, 3D machine vision systems and AI-powered applications at the show, along
FORECAST: The greater computing power needed for emerging AI applications has driven higher demand for advanced semiconductors worldwide, TSMC said The government-supported Industrial Technology Research Institute (ITRI) has raised its forecast for this year’s growth in the output value of Taiwan’s semiconductor industry to above 22 percent on strong global demand for artificial intelligence (AI) applications. In its latest IEK Current Quarterly Model report, the institute said the local semiconductor industry would have output of NT$6.5 trillion (US$216.6 billion) this year, up 22.2 percent from a year earlier, an upward revision from a 19.1 percent increase estimate made in May. The strong showing of the local semiconductor industry largely reflected the stronger-than-expected performance of the integrated circuit (IC) manufacturing segment,
NVIDIA FACTOR: Shipments of AI servers powered by GB300 chips would undergo pilot runs this quarter, with small shipments possibly starting next quarter, it said Quanta Computer Inc (廣達), which supplies artificial intelligence (AI) servers powered by Nvidia Corp chips, yesterday said that AI servers are on track to account for 70 percent of its total server revenue this year, thanks to improved yield rates and a better learning curve for Nvidia’s GB300 chip-based servers. AI servers accounted for more than 60 percent of its total server revenue in the first half of this year, Quanta chief financial officer Elton Yang (楊俊烈) told an online conference. The company’s latest production learning curve of the AI servers powered by Nvidia’s GB200 chips has improved after overcoming key component
RSS