Pfizer offers Rs 6.8 bn to raise stake in Indian arm | business | Hindustan Times
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Pfizer offers Rs 6.8 bn to raise stake in Indian arm

business Updated: Apr 13, 2009 11:31 IST

Global pharmaceutical major Pfizer on Monday said it will make an offer to acquire a further 33.77 per cent in its Indian subsidiary Pfizer Ltd for Rs.6.8 billion. The acquisition will raise its stake to 75 per cent.

The New York based pharmaceutical major is offering Rs 675 per share. The acquisition is to be done through a wholly-owned subsidiary, Pfizer Investments Netherlands BV.

Upon acceptance of the offer, Pfizer would have increased its stake in its Indian arm to 75 per cent from the current 41.23 per cent.

Pfizer will make the offer at a premium of 8.3 per cent to the April 9 closing price of Rs 623.00 on the Bombay Stock Exchange (BSE) - the last trading day before the announcement of the offer.

The price also represents a premium of 22.2 per cent over the average share price of Pfizer Ltd on the BSE during the 30 days ending on April 9.

Post this announcement, the Pfizer scrip opened higher on the BSE on Monday and was trading at about 7.4 per cent higher than its previous close at Rs 669. The 52-week high for the stock is Rs 698, which it touched on April 16 last year.