The Cabinet Committee on Economic Affairs (CCEA) on Wednesday, September 13, approved Berhyanda Ltd’s foreign investment proposal of up to Rs 9,589 crore in Suven Pharmaceuticals Limited. In April this year, the Competition Commission of India (CCI) cleared Berhyanda’s acquisition of a 76.10 per cent stake in Suven Pharma.
The CCEA approval is for the acquisition of up to 76.1 per cent equity shares of Suven Pharmaceuticals Limited, a public limited Indian pharmaceutical company listed on the NSE and BSE, by Berhyanda Limited, Cyprus, by way of transfer of shares of from existing promoter shareholders and public shareholders through mandatory Open Offer.
“The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Shri Narendra Modi today approved the FDI proposal for foreign investment of up to Rs 9,589 crore in M/s Suven Pharmaceuticals Limited by M/s Berhyanda Limited, Cyprus," according to an official statement.
The aggregate foreign investment may increase up to 90.1 per cent in Suven Pharmaceuticals Limited, it said.
The proposal has been evaluated by SEBI, RBI, CCI and other relevant agencies. Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices in the marketplace.
According to the FDI policy, 100 per cent foreign investment is allowed under automatic route in greenfield (fresh) pharmaceutical projects. In brownfield (existing) pharmaceutical projects, FDI up to 74 per cent are allowed under the automatic route and Government approval is required for investment beyond 74 per cent.
Berhyanda Ltd is a wholly-owned subsidiary of Berhyanda Midco Ltd, which is an affiliate of Advent International Corporation.
Suven Pharmaceuticals Ltd is a biopharmaceutical company that offers its services to global pharmaceutical and agrochemical majors.https://www.news18.com/business/ccea-approves-berhyandas-foreign-investment-proposal-of-rs-9589-crore-in-suven-pharma-check-details-8575935.html