Novartis Offers 28% More for Increased Control over India Operations
Deal is now valued at Rs. 5.64 billion, or about $118.48 million.
Novartis is upping its offer to acquire an additional stake in Novartis India by about 28%, bringing the value of the deal up to Rs. 5.64 billion, or roughly $118.48 million. Novartis says this is its final proposal.
If the transaction goes through, Novartis would enjoy more control over Novartis India and would decrease dividends paid to minority shareholders in the subsidiary.
Shares of Novartis India surged 20% to reach Rs. 467.50 in morning trading on the Bombay Stock Exchange. The firm is now trading over the current acquisition price being offered of Rs. 450 per share.
In March Novartis sought to buy an additional 39% of its Indian subsidiary for Rs. 351 per share. The company currently owns 50.9% of Novartis India.
Today’s offer comes at Rs. 450 per share, a 63% premium to the closing share price of Rs. 275.6 the day before the initial proposal was made.