Pfizer Investment Netherlands BV, a subsidiary of Pfizer Inc, will pay Rs 675 a share to acquire a 33.77% stake in Pfizer India. At this price, the total consideration is Rs 680 crore and Pfizer’s stake will go up to 75%. It will take regulatory approvals for the open offer. Pfizer will have to revise its offer price for the open offer to succeed, as the current market price is already Rs 685. It would have known it may not get many buyers at this price. But it expects the offer to open only in June 2009, so it has used the prevailing price to arrive at a floor. Continue Reading →
M&A
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Satyam Computer sold to Tech Mahindra
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Satyam Computer Services has found a new home in Tech Mahindra. It will pay Rs 58 a share, or a premium 23% premium over Friday’s close, to acquire a 31% stake in Satyam. That speaks for Satyam’s value even after all the fudging of books or for Tech Mahindra’s desire to acquire Satyam. Either way, it’s an outcome that will please Satyam’s shareholders, board and the government itself. The shareholders got a good price, the board has managed the sale process without any glitches and the government would be happy that it remains in Indian hands.
Filed under: Companies, Information Technology, Top News, M&A, Satyam, Satyam Scam, Scam, Tech Mahindra
Vedanta to delist Madras Aluminium (Malco)
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Vedanta Resources Plc has decided to delist Madras Aluminium Company (Malco). The Anil Agarwal promoted Vedanta owns 80% of Malco’s equity and has sent a proposal to its board to approve a delisting proposal under Sebi’s delisting guidelines. It will have to make an offer to Malco’s shareholders through a reverse book-building process. It will set a floor price while shareholders will be free to offer shares at a higher price. The price determined through the book-building process will be the final price, which Vedanta is free to accept or reject. Continue Reading →
Filed under: Companies, Top News, Economy International, M&A, Malco, Sterlite, Vedanta
Sun Pharma requests a judgement from Israel’s Supreme Court
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Sun said, in a SEC filing, it has extended the tender offer closing date from Jan 9 to Jan 30. It also said that it has informed the Supreme Court that its negotiations to reach a settlement have been unsuccessful. It is now awaiting the court’s decision in the matter. The dispute concerns the price at which Sun will acquire Taro’s shares from promoters and minority shareholders. Initially, Sun had offered $7.75 a share, which it then hiked to $9.50 a share, but Taro responded first with an offer to conduct a shareholder referendum to decide the price. Continue Reading →
Filed under: Companies, Top News, Companies International, M&A, Open Offer, Sun Pharma, Taro
Sun Pharmaceuticals refuses Taro’s $15 a share offer
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Sun Pharmaceuticals has sent a letter to the stock exchange, rejecting the offer put forth by Taro proposing $15 a share in the tender offer. In a letter, in what has now become routine, Sun Pharmaceuticals rejects the referendum proposal. It also addresses Taro’s latest offer of taking the merger price up to $15 a share.
Filed under: Companies, Quick News, M&A, Open Offer, Sun Pharma, Taro
Taro Pharma rejects Sun Pharma’s offer, proposes a shareholder referendum on the offer price
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Taro Pharmaceutical Industries has rejected Sun Pharmaceutical’s revised offer price (disclosed yesterday by Sun Pharma) as too low. It has said that Sun Pharma rejected its offer of a face to face meeting, made on December 30, and instead chose to go public with the offers, which were to be confidential. Apparently, Sun Pharma refused to meet unless Taro made a counter offer first.
Filed under: Companies, Top News, M&A, Pharmaceutical, Sun Pharma, Taro
Suzlon raises cash for REpower acquisition, sells stake in Hansen
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Wind power company Suzlon Energy’s is selling part of its 71.3% stake in Hansen Transmissions, a gearbox maker for wind turbines. Ecofin, a London-based investment company that claims to specialise in global utility and infrastructure sectors, will buy a 10% stake in Hansen from AE-Rotor Holding BV, a subsidiary of Suzlon. It will now have an 11.62% voting and economic interest in Hansen, indicating it had a small stake earlier too.
Filed under: Companies, Top News, M&A, Martifer, REpower, Suzlon
Axon goes to HCL: the mystery gameplan?
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Today, Axon Global’s shares will stop trading on the London Stock Exchange, marking a smooth ending to a takeover, which at one time saw HCL Technologies and Infosys Technologies pitted against each other. Though the logic of the deal and its benefits for HCL has been dealt with earlier, the ease with which HCL outbid Infosys is puzzling.
Filed under: Companies, News Analysis, Axon, HCL, Infosys, M&A
Suzlon Energy to pay Martifer 270mn euros in 3 tranches, 65mn euros right away
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Suzlon Energy has rescheduled its payment to Martifer, the Portuguese construction, energy and distribution company, for its 22.7% stake in Repower. Suzlon will now pay €65mn in December 2008, €30mn in April 2009 and the remaining €175mn in May 2009. The agreement will see Suzlon take control of Repower much later than scheduled but also gives it way out of a messy situation.
Filed under: Companies, Top News, M&A, Martifer, REpower, Suzlon
Sun Pharmaceuticals to pay 2x revenues to acquire Chattem?
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Sun Pharmaceuticals has acquired Chattem Chemicals Inc, a US-based pharmaceutical company, which makes $26mn in revenues from selling bulk drugs. Chattem had been acquired by Elcat Inc in 1995 from Chattem Inc, for $25mn. Sun has not disclosed the acquisition price but we will try to make some educated guesses.