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UPDATE 2-Nordic Capital offers to buy Advanz Pharma

* Nordic Capital offers to buy Advanz Pharma

* Proposed deal worth about $2 bln including debt-source

* Proposal is the “best outcome” - Advanz (Adds details on deal, background)

Jan 27 (Reuters) - Advanz Pharma on Wednesday recommended a takeover proposal from Nordic Capital, making the private equity fund a frontrunner to acquire the speciality drugmaker that restructured its debt in 2019.

Nordic Capital said the equity purchase price for Advanz Pharma was about $846 million. Including debt, the deal is worth about $2 billion, a person familiar with the matter said.

London-based Advanz had attracted interest from a number of private equity funds, including Carlyle and TDR, as its creditors looked for a new owner, sources familiar with the matter told Reuters last year.

“The proposal from Nordic Capital is considered by the Advanz Pharma independent directors as the best outcome for all shareholders, having had discussions with, and approaches from, a variety of potential acquirors,” Advanz Chairman Elmar Schnee said.

The Advanz Pharma independent directors intend to recommend unanimously that Advanz Pharma shareholders vote in favour of the proposal, Advanz said.

Nordic Capital said the company’s expertise in several therapeutic areas, along with its direct sales access in Europe, made it an attractive partner for commercialising complex medicines.

Advanz Pharma, which was formed from the 2015 merger of Concordia Healthcare and AMCO, makes drugs used in endocrinology, urology, pain management and cardiology among other therapeutic areas.

In 2018, the drugmaker, which was trading on Nasdaq as Concordia, was delisted as part of a debt restructuring deal and rebranded Advanz Pharma.

Under the offer from Nordic, shareholders would receive a price of $17.26 per Advanz share.

Shareholders can also opt for a non-cash offer to receive unlisted shares in Cidron Aida, the parent of the bidding company, for each Advanz share up to a maximum of 20% of Cidron’s share capital.

Jefferies, is the lead financial adviser to Advanz, with Barclays also acting as a financial adviser to the company. Morgan Stanley & Co. International was the financial adviser for Nordic Capital.

Reporting by Tanishaa Nadkar in Bengaluru; Editing by Arun Koyyur and Jane Merriman

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