The Bombay High Court has issued stay order on proposed delisting of shares by AstraZeneca Pharma India. At a hearing on October 9, 2014, the Court dismissed the petition and determined that the Securities Appellate Tribunal (SAT), hear any appeal by the petitioners. It directed that SAT deal with such appeal expeditiously, and before 15 January 2015. The Court directed that meanwhile the de-listing should not proceed.
AstraZeneca told Pharmabiz, “The company will evaluate the tender offers by reference to a rigorous assessment of the potential to enhance value for the wider group.”
The voluntary delisting offer by AstraZeneca Pharmaceuticals AB (AZPAB) of the equity shares in AstraZeneca Pharma India Ltd (AZPIL) is intended to secure greater flexibility and efficiency in the operations and management of the company. At the same time it provides an exit opportunity to the public shareholders of AZPAB. AstraZeneca has received public shareholder approval for the voluntary delisting process.
On 3 July 2014 a petition was served on AZPAB and AZPIL, and the local regulator alleging irregularities relating to the offer for sale in 2013. These allegations are without substance and denied., said the company.
The Court stayed the proposed delisting of AstraZeneca Pharma India Ltd after two minority shareholders opposed the plan because of an investigation by the market regulator Securities Exchange Board of India (SEBI) that ascertained alleged evidence of ‘collaboration’ between the AstraZeneca Pharmaceuticals AB and the Hong Kong-based Elliott Group which is a foreign institutional investor in its offer for sale (OFS) last year.
In July this year, Elliott Group had taken 94.02 per cent shares through the OFS, and currently holds 15.52 per cent of shares in the company.