Cadila Healthcare not to increase offer price
By Praveen Chandran | 27 Jun 2002
Mumbai: Zydus
Cadila Healthcare Ltd has decided not to increase the price of Rs
300 at which it had made an open offer to the public shareholders
of German Remedies Ltd (GRL).
Thursday (27 June 2002) is the final day for any price revision.
Says Zydus Cadila chairman and managing director Pankaj R Patel:
"This offer was made at a 15-per cent premium to the average
price of the 26 weeks prior to the announcement. Considering the
financials of GRL and its stock price performance, this is a fair
exit value to the shareholders of GRL."
The company had announced its decision to make an open offer in a
bid to acquire the entire public shareholding in GRL on 18 April
2002. At the time of this announcement, Cadila Healthcare and its
wholly owned subsidiary Recon healthcare Ltd held 55.40 per cent
in GRL.
In the event of Zydus Cadilas shareholding crossing 90 per cent
through the open
offer, it shall seek the delisting of GRL. The decision is in line
with international best practices to create one single-listed
entity in the Zydus Cadila group, particularly with respect to
companies in similar lines of business, and to harmonise the
interests of shareholders.
The company has further acquired 3.60 per cent from the open
market, bringing the companys current holding in GRL to 59 per
cent. Currently GRLs shares are listed on Bombay, Delhi and
National stock exchanges. The offer closes on 5 July 2002.
