Infar Board Meet On Tuesday To Consider Organon Offer

The Infar (India) board will meet Tuesday to consider issue of no-objection certificate to the proposed acquisition of 49.57 per cent or 30,11,652 shares of the company by the Dutch parent, Organon Participations BV.

Organon, a wholly owned subsidiary of global chemical giant Akzo Nobel NV through two fully owned holding companies, has expressed intention to acquire 49.57 per cent stake in Infar "through a share purchase agreement with the Indian promoters and a voluntary open offer to the other shareholders", Infar informed the Calcutta Stock Exchange today.

With the proposed acquisition, the Indian pharmaceuticals company will become a 100 per cent subsidiary of the Dutch firm.

 

When contacted, an Infar official said: "For the proposed enhancement of its shareholding in Infar, Organon, being a foreign company, is required to obtain the approval of the Foreign Investment Promotion Board (FIPB). Obtaining a no-objection from the Infar board is a pre-requisite for the FIPB approval. Consequently, the Infar board will meet Tuesday to consider the proposal by Organon."

Priced at Rs 285 a share, Organon will have to cough up Rs 85.83 crore to make Infar a 100 per cent subsidiary. However, Organon will complete the acquisition in two tranches.

The Dutch company has already entered into an agreement with the Indian founders of Infar to acquire 25.53 per cent of shares at Rs 285 per share.

The company will, subsequently, make an open offer to buy 24.04 per cent stake in Infar. It said the offer will open from September 14 to October 13.

Infar would apply for delisting from the National and the Calcutta stock exchanges after the open offer.