Pfizer seeks to increase stake in Indian arm

The world's biggest drugmaker, US-based Pfizer Inc, yesterday oferred to pay about $136 million (Rs680 crore) to boost its stake in its Indian arm Pfizer Ltd to 75 per cent.

Pfizer - which announced plans to buy rival Wyeth for $68 billion earlier this year - said it will launch a tender offer to buy a 33.77-per cent stake in the Indian business at a price of Rs675 per share. The offer represents a premium of more 8.6 per cent to the 9 April closing price for Mumbai-based Pfizer Ltd.

The price also represents a premium of 22.2 per cent over the average share price of Pfizer Ltd on the BSE during the 30 days ending 9 April. The acquisition is to be done through a wholly-owned subsidiary, Pfizer Investments Netherlands BV. The open offer will be managed by HSBC Securities and Capital Markets (India) Pvt Ltd.

Pfizer joins Novartis AG, Switzerland's second-biggest drug maker, in seeking to increase control after shares in their Indian units slumped last year. The Swiss  parent had offered to buy an additional 39 per cent in Novartis India Ltd. for Rs440 crore on 25 March.

Pfizer joins Novartis AG, Switzerland's second-biggest drug maker, in seeking to increase control after shares in their Indian units slumped last year. The company offered to buy an additional 39 per cent in Novartis India Ltd. for Rs440 crore on 25 March.

'Offer not good enough'
However, CNBC India managing director Udayan Mukherjee has commented that the parent company is unlikely to ''get much joy in the open offer''.