GLOBAL investment firm The Carlyle Group and the existing promoters of SeQuent Scientific Limited announced May 8 that CA Harbor Investments, an affiliated entity of CAP V Mauritius Limited and The Carlyle Group (together, Carlyle), has agreed to acquire an equity stake of up to 74% in SeQuent Scientific Limited (SeQuent), the largest pure-play animal healthcare company in India.

CA Harbor Investments proposes to acquire a majority stake in SeQuent via private share purchase agreements, for a purchase price of 86 Indian rupees (US$1.13) per share.

Pursuant to the Securities and Exchange Board of India (SEBI)’s Takeover Regulations, the proposed transaction will trigger a mandatory open offer by CA Harbor Investments and CAP V Mauritius Limited for the purchase of up to 26% equity shares of SeQuent from public shareholders to be identified in the open offer documents.

The transaction is expected to close in Q3 2020, subject to customary closing conditions and regulatory approvals. Following the completion of this transaction, CA Harbor Investments will become the new promoter of SeQuent.

Headquartered in Mumbai, SeQuent is the largest Indian pure-play animal healthcare company with global operations. The company provides animal health Active Pharmaceutical Ingredients (API), formulations, and analytical services in over 100 countries, with more than 1,700 employees and manufacturing operations in India, Spain, Turkey, Germany and Brazil.

The Carlyle Group has a history of investing in the healthcare sector, both in India and globally. Its investments in the Indian healthcare sector include Medanta Medicity Hospital, a leading hospital in the National Capital Region of Delhi, and Metropolis Healthcare, which operates a chain of diagnostic centers and laboratories.

The Carlyle Group has been making investments in India since 2000 and has invested more than US$2.5 billion as of March 31.

J.P. Morgan acted as exclusive financial advisor while Nishith Desai Associates acted as legal advisor to SeQuent and its promoters. Nomura acted as exclusive financial advisor while AZB & Partners and White & Case acted as legal counsels to CA Harbor Investments and Carlyle. Nomura will be acting as the manager to the public tender offer.