Dr Reddy's signs pact with OctoPlus for public offer

Hyderabad-based drug maker Dr Reddy's Laboratories Limited (DRL) and the Netherlands-based OctoPlus NV, a speciality pharmaceutical company, have entered into a conditional agreement in connection with an intended public offer by DRL or a wholly owned subsidiary of DRL for all issued and outstanding ordinary shares in the capital of OctoPlus at an offer price of 0.52 euro (cum dividend) in cash for each OctoPlus share.

DRL and OctoPlus announced their preparations for the offer, including preparations in respect of the offer memorandum for the offer and obtaining approval from the Netherlands Authority for the Financial Markets (the AFM) for the offer memorandum, are proceeding as planned, according to a company release.

It is expected that the offer will be launched mid December 2012. If launched, the offer period will run for at least eight weeks and no more than ten weeks. Closing of transaction is expected to occur in first quarter of 2013, the company stated.

Last month, the company has announced that it would acquire OctoPlus for about 27.4 million euros (about Rs 193 crore). DRL's scrip is currently trading at Rs 1,746.20, up 1.18 per cent over the previous close of Rs 1,725.80.