India: True North sells stake in drug research firm Syngene for $66m

visual from the company website

Private equity firm True North – earlier known as India Value Fund Advisors – has part-exited its investment in its over two-and-a-half years old firm portfolio firm Syngene International Ltd through a bulk market transaction.

In the process, the PE firm has pocketed around Rs 427.5 crore ($66.2 million) by selling over 90 million shares (4.5 per cent stake) at Rs 475 each through its affiliate Silver Leaf Oak Mauritius Ltd. Post deal, True North holds 2.7 per cent stake in the company.

True North had originally bought the stake in the company in 2014. At that time, it had acquired a 10 per cent stake in Syngene for Rs 380 crore

Theleme Master Fund Ltd, a UK-based hedge fund, bought the shares in Syngene International, as per the BSE data.

True North started selling the stake in Syngene in 2016. The investor sold a 0.29 per cent stake for Rs 25.8 crore in September quarter. Then, in the October-December quarter, it again offloaded a 2.23 per cent stake for around Rs 187 crore.

As of December 2016, True North held 7.2 per cent stake in Bangalore-based Syngene.

Founded in 1993, Syngene International provides custom research and manufacturing clinical supplies. Its services include clinical development, polymer research, chemical development, formulation development, stability services, safety assessment and others. Syngene International Ltd. operates as a subsidiary of Biocon Ltd.

Syngene International scrip last traded at Rs 483.25 each, down 2.05 per cent on BSE in a strong Mumbai market on Friday.

For True North, this is the second exit since January this year. It had also sold its stake in Fincare Business Services Pvt. Ltd in March.

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