Shares of Pfizer and Wyeth dropped 15.8% to 21.78% at 09:23 IST on BSE as they turned ex-dividend today, 5 December 2013 for highly liberal interim dividends.
Wyeth (down 15.8%), and Pfizer (down 21.78%) slumped.
Meanwhile, the S&P BSE Sensex was up 441.85 points, or 2.13% at 21,150.56
Pfizer had declared an interim dividend of Rs 360 per share to its shareholders and Wyeth had declared an interim dividend of Rs 145 per share. The record date for the dividend payment has been set at 6 December 2013 by both the companies. The announcement of highly liberal interim dividends was after the boards of Pfizer and Wyeth approved the merger between the two pharmaceutical companies on 23 November 2013.
Before turning ex-dividend, Pfizer offered a dividend yield of 21.04% based on the closing price of Rs 1710.60 on Wednesday, 4 December 2013.
Before turning ex-dividend, Wyeth offered a dividend yield of 14.61% based on the closing price of Rs 992.80 on Wednesday, 4 December 2013.
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As per the merger scheme, shareholders of Wyeth will get seven Pfizer shares for every 10 shares held. The appointed date of the merger scheme would be 1 April 2013. The merged entity will create a single brand of Pfizer.
The swap ratio for merger of Wyeth with Pfizer has been recommended after taking into account the payment of the interim dividend and is on a post dividend basis, the two companies said separately.
In the international market, Pfizer acquired Wyeth in 2009. The global merger of these companies was completed by the end of the same year except certain countries, including India. The valuation of equity swap and regulatory hurdles for the merger of two listed entities were the main reason for the delayed decision for the consolidation of these companies in India.
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