Sanofi unveils Rs 792 a share open offer for Aventis

French drug maker Sanofi-Synthelabo today announced an offer to the public shareholders of Aventis Pharma India to acquire 46.06 lakh shares of Rs 10 each, representing 20 per cent of the latter's equity share capital, at Rs 792.20 a share.

The move, leading to a change in management, is an outcome of Sanofi-Synthelabo's global acquisition of larger Franco-German rival Aventis, creating the world's third largest drugmaker Sanofi-Aventis.

DSP Merrill Lynch, the manager to the offer,said in a notice to the Bombay Stock Exchange that no person is acting in concert with the acquirer and the offer is not conditional on any minimum level of acceptance by shareholders. The specified date for the offer is September 9, while it opens on October 7 and closes on November 5.

The Rs 650 crore Aventis Pharma India is the second-largest multinational pharmaceutical company in India. Aventis' strategic brands in the Indian market include Combiflam, Novalgin, Baralgan (analgesics); Soframycin (dermatology); Allegra and Avil (respiratory drugs); Taxotere (cancer drug); Allegra (allergy drug); and Lovenox (anti-blood-clotting drug).

Sanofi-Synthelabo, on the other hand, has a business of around Rs 85 crore in the domestic market. Its product portfolio includes Plavix (stroke-prevention drug), Ambien (sleeping pills) and Eloxatin (cancer therapy).

While analysts expect no immediate impact of the merger in the domestic pharmaceutical, Sanofi-Aventis combine may swing into action post-2005 product patent regime.

In short

---

• Offer outcome of Sanofi's global acquisition of Aventis
• Offer opens on October 7 and closes on November 5, and the specified date is September 9
• Analysts see no immediate impact of the merger in the domestic market