Bayer launches ₹1,100 cr offer to buy up to 26% in Monsanto India

NEW DELHI: German pharma and chemical major Bayer group on Tuesday announced a mandatory open offer to buy up to 26% additional stake in Monsanto India for over

NEW DELHI: German pharma and chemical major Bayer group on Tuesday announced a mandatory open offer to buy up to 26% additional stake in Monsanto India for over ₹1,100 crore following its global deal to acquire US-based biotech major.

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In the open offer, Bayer will acquire up to 44,88,315 shares of Monsanto India from public shareholders at a price of ₹2,481.60 a piece. The offer price is 4% higher than Monsanto India’s closing rate of ₹2,390 per share on Tuesday on the BSE.

On September 14, Bayer AG announced the acquisition of Monsanto for $66 billion to create the world’s biggest seed and pesticide firm.

After completion of the proposed deal, Bayer group will be indirectly acquiring the 72.14% voting share capital of Monsanto India, triggering the launch of an open offer for the shareholders of the Monsanto India.

Monsanto group holds 72.14% stake in Monsanto India Ltd as on June 30, 2016, according to a regulatory filing.

Monsanto India Ltd said that DSP Merrill Lynch Ltd and Credit Suisse Securities (India) Pvt Ltd have issued public announcement for the open offer on behalf of Bayer group.

The open offer is for the “26% of the fully diluted voting equity share capital of Monsanto India by Bayer Aktiengesellschaft”.

Both Bayer and Monsanto have presence in India with the US firm selling genetically modified (GM) cotton seeds in the country for more than a decade.