Carlyle Group to invest up to ₹1,800 cr. to acquire majority stake in SeQuent Scientific

Carlyle Group and existing promoters of animal healthcare company SeQuent Scientific Ltd. have announced that CA Harbor Investments, an affiliated entity of CAP V Mauritius Ltd. and The Carlyle Group, has agreed to acquire an equity stake of up to 74% in SeQuent Scientific in a deal valued between ₹1,500 to ₹1,800 crore.

CA Harbor Investments has proposed to acquire a majority stake in SeQuent via private share purchase agreements, at a purchase price of ₹86 per share.

As per SEBI’s takeover norms, the proposed transaction will trigger a mandatory open offer by CA Harbor Investments and CAP V Mauritius Ltd. for the purchase of up to 26% equity shares of SeQuent from public shareholders. If fully subscribed the deal will be valued at ₹1,800 crore.

The transaction is expected to close in the third quarter of 2020. This will be the first time that Carlyle will be acquiring majority control in a listed company in India.

Following the completion of this transaction, CA Harbor Investments will become the new promoter of Mumbai headquartered SeQuent.

Arun Kumar, on behalf of the current promoter group of SeQuent, said, “We are confident that Carlyle’s global network and resources will be a catalyst for SeQuent’s next stage of growth and innovation.”

Neeraj Bharadwaj, Managing Director, Carlyle Asia Partners team, said, “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.”

“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 income,” he added.

Manish Gupta, CEO, SeQuent, said, “SeQuent emerged as India’s leading animal healthcare company within six years, completing phase one of its growth journey. We look forward to a new phase of development, where we together with Carlyle will work to grow the company into one of the top global animal healthcare companies.”

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Printable version | Jul 9, 2020 7:41:09 AM |

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