BUSINESS

Novartis offer for Indian arm to begin on May 20

Source:PTI
May 15, 2009 12:50 IST

Swiss Drug maker Novartis AG's open offer for acquiring an additional 39 pr cent stake in its Indian subsidiary will begin on May 20.

The open offer would begin on May 20 and close on June 8, Novartis India said in a filing to the Bombay Stock Exchange.

The offer by Novartis AG is to acquire up to 1,24,64,710 shares, representing a 39 per cent stake in Novartis India, at a price of Rs 351 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 May 14, but on Friday rescheduled the offer date.

Further, Novartis AG has deposited in an escrow account with Bank of America NA, an amount of Rs 4.40 crore in cash as per market regulator Sebi's regulation.

At present, the Swiss parent holds a 50.9 per cent stake in Novartis India. Following the acquisition, Novartis AG would hold 2,87,42,147 shares, or 89.93 per cent, 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 per cent to Novartis India's closing price of Rs 275.6 on March 24.

Since the announcement of the open offer by Novartis AG on March 25, the scrip of Novartis India has been on an upward swing, gaining over 20 per cent on the BSE.

Shares of Novartis were trading at Rs 392.15, up 0.24 per cent in the afternoon trade on the BSE.

Source: PTI
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