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| Novartis sweetens bid for India arm to Rs 450 a share |
| Press Trust of India / Mumbai May 28, 2009, 11:23 IST |
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Swiss drug firm Novartis AG today sweetened its open offer price to Rs 450 a share for acquiring an additional 39 per cent stake in its Indian subsidiary — Novartis India.
Novartis AG has revised upward the price of the offer to Rs 450 per share, from the original offer price of Rs 351 a piece, Novartis India said in a filing to the Bombay Stock Exchange.
Following the announcement, shares of Novartis India surged 20 per cent to hit its upper circuit at Rs 467.50 in morning trade on the BSE.
In March, Novartis AG had said it would make an open offer for a further 1,24,64,710 shares or 39 per cent stake in its Indian subsidiary, at a price of Rs 351 per share.
The offer, which begun on May 20, for buying back of shares from its shareholders, would close on June 8.
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 nearly 70 per cent on the BSE.
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