InvestorQ : Do you suggest buying into Sequent Scientific after the recent acquisition of stake by Carlyle group?
Arti Chavan made post

Do you suggest buying into Sequent Scientific after the recent acquisition of stake by Carlyle group?

Answer
user profile image
5 months ago


The US based PE investor, Carlyle Group, will acquire up to 74% in Sequent Scientific Ltd, a pharmaceutical company focused on animal health solutions. 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. It has manufacturing operations spread across India, Spain, Turkey, Germany and Brazil. Carlyle will be acquiring a maximum of 183 million shares from the promoters and subsequently a mandatory open offer will be made at a price of Rs.86 per share. The total consideration for the 74% stake will amount to approximately Rs.1580 crore. That is slightly higher than the closing price of Sequent in the previous week. In all, Carlyle will acquire 44.92% from the promoters of the company, another 5.69% from existing PE investor Ascent Capital and then Carlyle will make an open offer to acquire up to 26% equity from public shareholders. Global PE investors like Carlyle are currently seeing a strong growth potential in the global animal health industry, where Sequent is operating.