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Novartis open offer for Indian arm to begin on 20 May

Novartis open offer for Indian arm to begin on 20 May
PTI
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First Published: Fri, May 15 2009. 02 02 PM IST
Updated: Fri, May 15 2009. 02 02 PM IST
Mumbai: Swiss drug maker Novartis AG’s open offer for acquiring an additional 39% stake in its Indian subsidiary will begin on 20 May.
The open offer would begin on 20 May and close on 8 June, Novartis India said in a filing to the Bombay Stock Exchange (BSE).
The offer by Novartis AG is to acquire up to 1,24,64,710 shares, representing a 39% stake in Novartis India, at a price of Rs351 per share.
Earlier in March, the drug firm had said its Swiss parent’s open offer for hiking its stake in Novartis India would begin on 14 May, but on Friday rescheduled the offer date.
Further, Novartis AG has deposited in an escrow account with Bank of America NA, an amount of Rs4.40 crore in cash as per market regulator Sebi’s regulation.
At present, the Swiss parent holds a 50.9% stake in Novartis India. Following the acquisition, Novartis AG would hold 2,87,42,147 shares, or 89.93%, in the firm. DSP Merrill Lynch Ltd is acting as the manager to the offer.
The offer by Novartis AG has been made at a premium of 27% to Novartis India’s closing price of Rs275.6 on 24 March.
Since the announcement of the open offer by Novartis AG on 25 March, the scrip of Novartis India has been on an upward swing, gaining over 20% on the BSE.
Shares of Novartis were trading at Rs392.15, up 0.24% in the afternoon trade on the BSE.
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First Published: Fri, May 15 2009. 02 02 PM IST