Swiss drug maker Novartis AG today made an open offer to acquire an additional stake of 39 per cent in its Indian subsidiary for a total value of up to Rs 440 crore (nearly $87 million).
The parent company would buy back the shares at a price of Rs 351 a piece, Novartis (India) said in a filing to the Bombay Stock Exchange.
The successful completion of this offer would raise the stake of Novartis in its Indian subsidiary to nearly 90 per cent from the current 50.9 per cent, it added.
The offer by Novartis AG has been made at a premium of 27 per cent to Novartis India's closing price of Rs 275.6 on March 24, the filing said.
The offer for these shares is expected to open in May this year and is subject to regulatory approvals, it added.
The news is followed by a surge in the stock of Novartis India, which jumped 20 per cent to touch its upper circuit at Rs 330.70 on the BSE.
