Financial Daily from THE HINDU group of publications
Friday, Apr 19, 2002
Financial Daily from THE HINDU group of publications Friday, Apr 19, 2002 |
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Corporate
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Open Offers Zydus offers Rs 300 for German Remedies share Our Bureau
MUMBAI, April 18 ZYDUS Cadila is to make an open offer to the minority shareholders of German Remedies Ltd at a price of Rs 300 per share. The board of directors of Cadila Healthcare Ltd (Zydus Cadila) made the decision which could lead to the delisting of German Remedies from stock exchanges at Mumbai, Delhi and the National Stock Exchange. The offer will cost Zydus Cadila about Rs 110.38 crore. According to a press release, the company seeks to acquire the entire public shareholding of 44.60 per cent in German Remedies. "Zydus Cadila, along with its wholly-owned subsidiary, Recon Healthcare Ltd, currently holds 55.40 per cent. In the event of Zydus Cadila's shareholding crossing 90 per cent through the open offer, it shall seek the delisting of German Remedies,'' the release stated. Mr Pankaj R. Patel, Chairman and Managing Director, Zydus Cadila said: "In consonance with the group philosophy, we believe that there should only be one single listed entity in the group, especially with respect to companies in similar, competing lines of business.'' The open offer is slated to open on June 6. Zydus Cadila had acquired a controlling stake in German Remedies Ltd early last year when it bought the foreign companies holding of 36.96 per cent in German Remedies. The foreign stakeholders in German Remedies included Asta Medica AG and Heller Vermogensverwaltungs GmbH, Boehringer Ingelheim and Schering AG. The earlier open offer price immediately after the acquisition was at Rs 650 per share, a premium of 116 per cent from the current price offer of Rs 300 per cent. Today, the share price of Cadila Healthcare went down by 3 per cent on the Bombay Stock Exchange to close at Rs 139.
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