Novartis AG has revised its offer price to Rs 450 per share from earlier declared price of Rs 351 on account of significant price jump on BSE and NSE. The scrip was moving around Rs 390 on May 27 and moved up to Rs 467 in morning session of today. Pursuant to the upward revision in the Offer Price, the maximum consideration required to meet the obligation of offer assuming 100 per cent acceptance is Rs 561 crore as compared to Rs 440 crore for the earlier offer. The offer closes on Monday June 8, 2009.
It seems that the company management will have to revise the price further as the scrip is firming up and likely to cross Rs 500 mark in near future, according to market analyst.
During March 2009, Novartis AG announced a tender offer to acquire an additional stake of up to approximately 39 per cent in its majority-owned Indian subsidiary, Novartis India Ltd, from public shareholders at a price of Rs 351 per share. At present, Novartis AG has a controlling equity stake of 50.9 per cent in its Indian arm.