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Our Bureau

Kolkata, May 29 Emami has increased its stake in Zandu Pharmaceutical Works Ltd by 10.91 per cent through off-market deals, ending near the 15 per cent threshold set by the SEBI takeover norms. If crossed, it will make way for acquisition of another 20 per cent from mandatory open offer.

Zandu has informed the NSE that Emami, along with a few PACs, has picked up 88,032 shares in Zandu on May 28 to take the voting rights to 14.81 per cent. Emami held 31,419 shares, representing 3.9 per cent in Zandu. The promoters of Zandu till March 31, 2008 held 41.99 per cent in the company.

Mr Mohan Goenka, one of the executive directors of Emami, told Business Line that “at this stage” he was constrained to disclose anything regarding purchasing further stake in Zandu. “Wait for another 24 hours,” he commented, indicating possibility of a further announcement in this regard shortly.

Mr Harsh Vardhan Agarwal, Emami ED, was not available for comment.

The Zandu stock on Thursday finished at Rs 6,995.85. It had closed at Rs 7,080.85 on Wednesday. Neither Zandu nor Emami informed the exchanges about the dealings. There was no mention about the price at which Emami made the current purchases.

Emami on Wednesday reconstituted its executive committee set up to look into possible takeovers and alliances, and included two independent directors on board. Emami board also proposed to issue fresh shares to qualified institutional bidders up to a maximum of 15 per cent of the enhanced paid up capital.

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