Solvay Pharma to merge with Abbott India in a 3:2 share swap
25 Nov 2010
Solvay Pharma India yesterday said that its board has approved a proposal to merge with Abbott India under a 2:3 share swap ratio, after the Solvay Group agreed to sell its global pharmaceutical business to Abbott Laboratories last year.
Solvay Pharma said its shareholders would get 3 shares of Abbott India for every 2 held.
Abbott's three shares were worth Rs4,275 on 23 November closing, while Solvay's 2 shares were worth Rs5,312.
Abbott Park- , Illinois, based Abbott had acquired the pharmaceutical business of Belgium's Solvay for $6.6 billion in cash in September 2009 to take full control of its joint cholesterol drug venture. (See: Abbott to acquire Belgian drug company Solvay for $6.6 billion)
On completion of its acquisition, Abbott Laboratories had acquired an additional 20 per cent of Solvay India in March 2010 through a mandatory open offer, taking its stake up to nearly 89 per cent. (See: Abbott bids for 20 per cent of Solvay India)
Mumbai-based Solvay Pharma India, with a turnover of Rs74 crore for the quarter ended 30 June, was formed in 2002 as a result of the demerger of the pharma business of Duphar-Interfran Ltd.
