Emami makes open offer for Zandu Pharma at Rs7,315 a share

03 June 2008

Mumbai: FMCG major Emami has made an open offer to the shareholders of Zandu Pharmaceutical acquire up to 20 per cent outstanding stake in the company at Rs7,315 per share.

Emami is offering Rs7,315 a share against last 26 weeks' average price of Rs6,807.07 and the last two weeks' average price of Rs7,136.91, Anand Rathi Financial Services Ltd, manager to the offer, said in a filing with the Bombay Stock Exchange.

The offer is in pursuance of and in compliance with Regulation 10 and 12 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 1997 and subsequent amendments thereto ("Regulations"), it said.

Emami has offered to acquire up to 1,61,280 fully paid-up equity shares of Rs100 each representing 20 per cent of the paid-up equity share capital of Zandu Pharmaceuticals at a price of Rs7,315 a share.

The offer will open on 24 July and close on 12 August, the company said in its filing.
 
Last week Emami picked up a substantial stake of 23.6 per cent for around Rs130 crore, where Emami paid Rs6,900 (including non-compete fees of Rs100) per share of Zandu from the Vaidyas, one of the promoter groups of Zandu.

The acquisition, along with the existing holding of Emami group firms, will raise its total holding in Zandu to 27.5 per cent.