American private equity investor The Carlyle Group has agreed to acquire up to a 74% stake in animal health focused pharmaceutical company SeQuent Scientific Ltd, the company said in an exchange filing on Friday.
SeQuent is a pure-play animal healthcare company with global operations and provides active pharmaceutical ingredients (APIs), formulations, and analytical services in over 100 countries, with more than 1,700 employees and manufacturing operations in India, Spain, Turkey, Germany and Brazil.
Carlyle is acquiring a maximum of 183 million shares from the promoters and a mandatory open offer at Rs86 per share. The total consideration for the 74% stake will come to about Rs1,580 crore.
On Friday, SeQuent's shares closed at Rs80.25 each on the BSE, up 0.5% from their previous close.
The transaction will see the promoters of the company sell a 44.92% stake. Carlyle has also agreed to buy the 5.69% stake held by existing private equity investor Ascent Capital, depending on certain conditions. The transaction is expected to close in the October quarter.
Carlyle's acquisition of the promoter stake will trigger an open offer to acquire up to 26% equity from public shareholders of the company.
Nomura acted as exclusive financial advisor for Carlyle and will also be managing the open offer. Law firm Nishith Desai Associates advised Sequent and its promoters.
"SeQuent is led by an experienced management team, and has built strong API and formulation businesses that are poised for continued growth in the evolving animal health industry. We will draw on our global network, industry knowledge and operating expertise in healthcare to advise SeQuent on its business expansion strategy, enhance its operations, and help the company drive sales and product innovation," said Neeraj Bharadwaj, managing director at Carlyle Asia Partners
“We see strong growth potential in the global animal health industry, including the livestock segment where SeQuent is operating, thanks to increasing demand for animal protein, rising awareness of food safety, and growing disposable incomes," he added.