fizer is looking to boost its stake in its Indian unit and take its holding up to 75%.
The New York-based giant said that its Pfizer Investments Netherlands subsidiary has made an offer to acquire a further near-33.8% stake in Pfizer Ltd. It will pay up to 6.8 billion rupees, around $136 million, to push up its holding in the Mumbai-based entity.
Pfizer is offering 675 rupees a share, which represents an 8.6% premium over the Indian unit’s closing price on April 9 and 22.2% more than the average price over the last month. The offer is expected to open in June and the news led to Pfizer Ltd’s share price leaping over the 700 rupee mark at one stage. Pfizer India has a market share of 2.2%, and is currently ranked 14th in the country.
The move by Pfizer comes a few weeks after another major drugmaker, Novartis, decided to increase its stake in its Indian subsidiary. The Swiss-based group is offering to buy an additional 39% holding in Novartis India for 4.4 billion rupees, or $87 million.
The firm currently has a 50.9% stake in Novartis India and is looking to boost that to around 90%. The offer, which is expected to open next month, is 351 rupees per share, a premium of 27%.