Pfizer to raise stake in its Indian arm through ‘Tender Offer’

PfizerPfizer Investments Netherlands BV, a wholly-owned subsidiary of Pfizer Inc., said that it will make a tender offer to acquire an additional 33.77% stake in Pfizer India from public shareholders, at a price of Rs 675 per share.

Global pharmaceutical major will make the offer at a premium of 8.3 percent to the April 9 closing price of Rs 623 on the BSE, the last trading day before the announcement of the offer.

Upon acceptance of the offer, which represents a total value of up to Rs 680 crore (US$136mn), Pfizer would raise its stake in its Indian arm to 75 percent from the current level of 41.23 percent.

However, it should be noted that this level is below the SEBI -stipulated shareholding of 90% which is mandatory for delisting.

The offer for the retail shares is expected to open in June 2009 and will be subject to regulatory approvals.

The open offer will be managed by HSBC Securities and Capital Markets (India).

Today, Pfizer shares in Mumbai market surged as much as 13% to Rs 690, the highest in almost a year. The stock traded 10% higher at Rs 685 at 3:15 p. m.

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