FMCG major Emami has further revised the open offer price for purchasing 20 per cent stake in Zandu Pharmaceutical to Rs 16,500 per share, within a fortnight after Emami doubled the offer price to Rs 15,000 per share, from the initial Rs 7,315 a piece.
“The price revision should benefit the shareholders,” said N Bhansali, chief financial officer of Emami Ltd, adding that the strife between Zandu and Emami has still not been settled.
In June, Emami had made an open offer for acquiring up to 1,61,280 shares representing 20 per cent in Zandu Pharma, after it raised its stake in the company to 27.51 per cent.
Emami had picked 24 per cent stake in Zandu at a price of Rs 6,900 per share from one of its promoter family. This, along with the existing holding of Emami, had raised the firm’s holding in Zandu to 27.5 per cent. Indian takeover regulations necessitate an acquirer to make an open offer for an additional 20 per cent in the target firm when its stake increases to 15 per cent. The open offer that started on September 26, would close on October 15.
In a filing to the exchanges Emami had named Bhanu Vyapaar Pvt Ltd (formerly Alyan Food Products Pvt Ltd), Suraj Viniyog Pvt Ltd, Diwakar Viniyog Pvt Ltd and Suntrack Commerce Pvt Ltd are acting in concert with Emami to acquire Zandu.
Emami intends to acquire up to 161,280 fully paid up Zandu’s equity shares of Rs100 each, representing 20 per cent equity through the open offer.
On the other hand, Zandu’s plans to appoint two new directors to replace outgoing directors P P Vora and K Natarajan, are put on hold, due to a petition from shareholders challenging the company’s decision to appoint new directors, one of the resolutions that was supposed to be moved at Zandu’s annual general meeting on September 24.
