Strides ups offer for Ascent's shares at $0.4

Drug-maker Strides Arcolab today said it has raised its offer price for acquiring 43 per cent minority share in Australia-based Ascent Pharmahealth to $0.40 per share.

Strides has a controlling stake of 57 per cent in the Australian entity. The Bangalore-based company had acquired majority stake in the Australian firm in August 2008, which sells branded generic drugs and over-the-counter products in the Australasia region.

The offer price of $0.40 per share is higher than the indicative bid of $0.35 per piece made for Ascent's minority shares in March, 2010, Strides said in a regulatory filing.

The latest cash offer of $0.40 per share, which is a 51 per cent premium on Ascent's closing price on December 21, values the Australian company at $100 million.

Once the deal is complete, Ascent would be delisted from the Australian Stock Exchange.

Both companies have entered into an agreement for the proposed deal, under which Linkace Investments Pty -- owned by Strides -- would acquire minority shares in Australian firm, the filing said.

In March, Strides had said it was in talks with Ascent's minority shareholders to purchase remaining 43 per cent stake.

Ascent expects to record a EBITDA in the range of $17.5-18 million in calendar year 2010.

Shares of Strides were today trading at Rs 422 on the Bombay Stock Exchange in the late afternoon trade, up 0.15 per cent from its previous close.