Novartis scrip hits upper circuit on stake-hike news (Lead)

March 25th, 2009 - 5:12 pm ICT by IANS  

Mumbai, March 25 (IANS) The Novartis India scrip jumped almost 20 percent Wednesday to hit the upper circuit after Novartis AG of Switzerland, a group subsidiary, said it would make an open offer to acquire an additional 39 percent stake in the Indian unit.
The Novartis scrip, which opened at Rs.275.60, shot through the roof after the announcement, rising 19.99 percent above its last closing figure to rule at Rs.330.70.

At this level, the scrip touched its upper filter.

Novartis will acquire the stake from public shareholders at Rs.351 per share at a premium of 27 percent from Tuesday’s closing price of Rs.275.60. The offer price represents a premium of 35 percent over Novartis India’s average share price during the last month.

“Successful completion of the offer would raise the company’s stake in Novartis India Ltd to nearly 90 percent from the current level of 50.9 percent,” the company said in a statement.

The offer represents a total value of around Rs.440 crore ($87 million).

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