Novartis makes an open offer to increase stake in Novartis India Ltd
teaser
Novartis announced today a tender offer to acquire an additional stake of up to approximately 39% in its majority-owned Indian subsidiary, Novartis India Ltd, from public shareholders at a price of rupee 351 per share.
Successful completion of this offer (assuming full acceptance) would raise the stake of Novartis in its Indian subsidiary to nearly 90% from the current level of 50.9%. The offer represents a total value of up to rupees 4.4 billion (or approximately $87 million).
A public announcement is being published in India as required by law. The offer for these shares, which are traded on the Bombay Stock Exchange, is expected to open in May 2009 and is subject to regulatory approvals.
The offer by Novartis AG, a Group subsidiary, has been made at a premium of 27% to the closing share price of rupees 275.6 of Novartis India Ltd on March 24, which was the last trading day before this announcement. It also represents a premium of 35% over Novartis India Ltd’s average share price during the last month.
