New Delhi : Procter & Gamble will acquire a 51.80 per cent stake for Rs 1,289.88 crore in India listed drug firm Merck as part of a global deal under which it is taking over German firm Merck’s international consumer health business. The global deal is for about $4.2 billion (Rs 27,677 crore) in cash.
P&G will acquire Merck’s majority shareholding in Merck (India) and make a mandatory tender offer to minority shareholders.
In a regulatory filing, Merck said Procter & Gamble Overseas India and The Procter & Gamble Company have launched an up to Rs 647.53 crore open offer to acquire up to 4,315,840 equity shares of Merck, constituting 26 per cent stake from public shareholders.
The open offer document said: “Procter & Gamble has entered into a sale and purchase agreement… wherein it is proposed that the acquirer shall purchase from Emedia Export Company, Merck Internationale Beteiligungen and Chemitra 8,599,224 equity shares, which constitutes 51.80 per cent of the voting share capital.”
It said sale of the equity shares held by the sellers is proposed to be executed at a “price of up to Rs 1,500 per fully paid up equity share aggregating to up to Rs 1,289,88,36,000 total for all equity shares held by the sellers payable as Euro equivalent in cash”. The company also said under the open offer by P&G, up to 26 per cent of the fully diluted voting equity share capital will be acquired at a price of Rs 1,500.36 per share amounting to Rs 647.53 crore.
