 "Merck hits record high; stock zooms 18%")
Shares of Merck hit a new high of Rs 2,369 per share, up by 18% on the BSE on back of heavy volumes in otherwise weak market.
Since April 19, 2018, the stock of pharmaceutical company has zoomed 57% from Rs 1,510, after the Procter & Gamble Overseas India made mandatory open offer to acquire 26% stake in the company at price of Rs 1,500.36 per share.
Procter & Gamble Overseas India BV together with the Procter & Gamble Company (P&G Group) set to acquire 8.6 million equity shares of Rs 10 each of Merck representing 51.80% of the voting share capital for an aggregate purchase price consideration of up to Rs 12.90 billion.
The acquirer is set to acquire 4.3 million equity shares of Rs 10 each constituting 26% of the total outstanding capital of Merck Ltd (India) through open offer for a price of Rs 1,500.36 each. The offer opens on June 13, 2018 and close on June 26, 2018.
Merck is planning to transfer certain businesses comprising exclusively of the biopharma, performance materials and life sciences (BPL) segments to Merck Life Science Pvt Ltd for a consideration of Rs 10.52 billion after shareholders and other statutory approvals.
“The sale of the BPL Business, which is in line with global realignment under P&G and its affiliates, the new promoters of the Company post-change of control, would enable the Company to focus more on further growing and developing its core CH business. In particular, it will enhance the ability of the Board of Directors, the Company's management and all retained employees to focus on and to drive forward the growth of the Company's retained (i.e. CH) business,” Merck said today on additional information about the proposed transaction.
At 10:10 am; the stock was trading 15% higher at Rs 2,302 on the BSE, as compared to 0.39% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 143,205 equity shares changed hands on the BSE and NSE so far.
Since April 19, 2018, the stock of pharmaceutical company has zoomed 57% from Rs 1,510, after the Procter & Gamble Overseas India made mandatory open offer to acquire 26% stake in the company at price of Rs 1,500.36 per share.
Procter & Gamble Overseas India BV together with the Procter & Gamble Company (P&G Group) set to acquire 8.6 million equity shares of Rs 10 each of Merck representing 51.80% of the voting share capital for an aggregate purchase price consideration of up to Rs 12.90 billion.
The acquirer is set to acquire 4.3 million equity shares of Rs 10 each constituting 26% of the total outstanding capital of Merck Ltd (India) through open offer for a price of Rs 1,500.36 each. The offer opens on June 13, 2018 and close on June 26, 2018.
Merck is planning to transfer certain businesses comprising exclusively of the biopharma, performance materials and life sciences (BPL) segments to Merck Life Science Pvt Ltd for a consideration of Rs 10.52 billion after shareholders and other statutory approvals.
“The sale of the BPL Business, which is in line with global realignment under P&G and its affiliates, the new promoters of the Company post-change of control, would enable the Company to focus more on further growing and developing its core CH business. In particular, it will enhance the ability of the Board of Directors, the Company's management and all retained employees to focus on and to drive forward the growth of the Company's retained (i.e. CH) business,” Merck said today on additional information about the proposed transaction.
At 10:10 am; the stock was trading 15% higher at Rs 2,302 on the BSE, as compared to 0.39% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 143,205 equity shares changed hands on the BSE and NSE so far.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%