Elder Pharmaceuticals has soared 8% to Rs 317 on reports that French drug maker Sanofi SA is close to acquiring the Mumbai-based pharmaceuticals company.
The stock opened at Rs 310 and touched high of Rs 323 on BSE. A combined 265,000 shares have changed hands on the counter in early morning deals on BSE and NSE.
“The Indian company’s recent default on interest payments of Rs 10 crore to debenture holders had expedited the talks for the sale,” the Business Standard report suggests quoting a banker close to the development.
Sanofoi SA is valuing the Elder pharma at about Rs 2,200 crore. The transaction is expected to be closed in the next few weeks, added report.
Meanwhile, the company in July had received board approval for restructuring of the company's business through raising capital, hiving off of assets or other strategic options to reduce debt and decided to appoint advisors for this purpose.
The stock opened at Rs 310 and touched high of Rs 323 on BSE. A combined 265,000 shares have changed hands on the counter in early morning deals on BSE and NSE.
“The Indian company’s recent default on interest payments of Rs 10 crore to debenture holders had expedited the talks for the sale,” the Business Standard report suggests quoting a banker close to the development.
Sanofoi SA is valuing the Elder pharma at about Rs 2,200 crore. The transaction is expected to be closed in the next few weeks, added report.
Meanwhile, the company in July had received board approval for restructuring of the company's business through raising capital, hiving off of assets or other strategic options to reduce debt and decided to appoint advisors for this purpose.
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