Emami sweetens its open offer price for Zandu to Rs16,500

Emami sweetens its open offer price for Zandu to Rs16,500
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First Published: Fri, Oct 03 2008. 10 39 AM IST
Updated: Fri, Oct 03 2008. 10 39 AM IST
PTI
Mumbai: FMCG major Emami today said it has revised the open offer price for purchasing 20% stake in Zandu Pharmaceutical to Rs16,500 per share.
The announcement came within a fortnight after Emami doubled the offer price to Rs15,000 per share, from the initial Rs7,315 a piece.
In a filing to the Bombay Stock Exchange, the company said, “Emami has revised the offer price in respect of the public offer made by it for acquisition of equity shares of Zandu Pharmaceuticals Works Ltd from Rs15,000 each to Rs16,500 per share”.
Shares of Emami were trading at Rs277.50, down 3.12%, while Zandu was quoted at Rs15,956, up 4.60% in the morning trade on the BSE.
In June, Emami had made an open offer for acquiring up to 1,61,280 shares representing 20% in Zandu Pharma, after it raised its stake in the company to 27.51%.
Emami had picked 24% stake in Zandu at a price of Rs 6,900 per share from one of its promoter family. This, along with the existing holding of Emami, had raised the firm’s holding in Zandu to 27.5%.
Indian takeover regulations necessitate an acquirer to make an open offer for an additional 20% in the target firm when its stake increases to 15%.
The open offer that started on September 26, would close on October 15.
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First Published: Fri, Oct 03 2008. 10 39 AM IST