On February 29, Suven Pharmaceuticals Limited announced a proposed scheme of amalgamation to merge Cohance Lifesciences Limited with Suven.
According to a press release by Suven Pharmaceuticals, the overall transaction is anticipated to be completed over the next 12-15 months, subject to obtaining all necessary shareholder and regulatory approvals.
The merger process was initiated by leading global private equity fund Advent International for its portfolio companies Suven Pharmaceuticals and Cohance Lifesciences. Kotak Mahindra Capital and Citi have been appointed as advisors for various aspects of the deal, including the swap ratio, due diligence, and fairness opinion.
The amalgamation aims to position Suven as a diversified leader in Contract Development and Manufacturing Organization (CDMO) and Active Pharmaceutical Ingredient (API) sectors in India, expanding its revenue base significantly. The combined entity is expected to rank among the top integrated CDMO players in India, benefiting from expanded capacity of 2,650 kL and a broader customer base, leading to substantial scale and synergy benefits.
Upon the scheme’s effectiveness, shareholders of Cohance will receive shares of Suven at a ratio of 11 shares of Suven for every 295 shares of Cohance, based on the swap ratio. The newly issued Suven shares will be listed on the NSE and BSE. Following the merger, Advent entities will own 66.7 percent, while public shareholders will hold 33.3 percent of the combined entity (pre-ESOP dilution).
