Merck & Co. Inc. and Dashtag, have decided to acquire 21.07 per cent equity stake (8.22 lakh equity shares) of Fulford (India) through voluntary open offer at a price of Rs 830 per share of Rs.10 each aggregating to Rs.68.22 crore. Fulford scrip is currently moving around Rs.770 with 52-weeks high at Rs.953.60 on BSE. Today the scrip went up by Rs.70.05 with circuit limit of 10 per cent. Dashtag is the ultimate parent company of Merck group. Morgan Stanley India will be the manager to the open offer.
Fulford's 53.93 per cent equity stake is presently owned by Schering-Plough Holdings Ltd, a wholly owned subsidiary of Merck Group. After acquisition of 21.07 per cent stake, the equity holding of Merck will go up to 75 per cent. At present domestic financial institutions and public are holding equity stake of 11.64 per cent and 33.17 per cent respectively.
At present Merck does not directly hold any equity shares in the Fulford, which enters into various related party transactions in the course of its business with other subsidiaries of Merck (in India and worldwide) such as purchase of raw materials, finished goods, rendering and availing of services, etc. Fulford is allowed to use, at the sold discretion of Merck, certain trademarks, patents and technical know-how owned by it and is subsidiaries. Fulford has technical know-how arrangement with Merck through which it gets the benefits of research and development efforts of Merck and its affiliates.