Business Daily from THE HINDU group of publications
Tuesday, Jul 15, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Tuesday, Jul 15, 2008 ePaper | Mobile/PDA Version | Audio |
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Markets
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Stocks Corporate - Open Offers 
Jayanta Mallick Kolkata/Mumbai, July 14 Zandu Pharmaceutical Works scaled a new height on Monday as the Rs 100-face valued stock closed at Rs 19,088.90, its all-time high and more than three-fold price offered by Emami group, which had purchased 23.6 per cent in the company and has proposed an open offer. The stock has been moving up since the Emami group bought shares in off market deals from one of the two promoter families. In the past one month, the stock has appreciated by 53 per cent. Mr Harsh Agarwal, Executive Director of Emami, told Business Line that they were awaiting SEBI nod on the open offer, which after the clearance is scheduled to open on July 24. However, sources in the Parikh family, the existing promoter group of Zandu said: “We have written letter to SEBI and raised “compliance” related issues in terms of the acquisition and the open offer”. According to sources, Parikh family, which has been buying Zandu shares from the market, “will do everything possible to fortify the company”. An open offer for 20 per cent stake purchase by Emami Ltd and its associates at a price of Rs 6,807.07 has been proposed soon after Emami group bought out Vaidyas late in May. If the higher price stands in the market, the obvious way out to make the offer successful is to align it with the market price through a revision of the original proposal. Emami insists that the offer was in line with the intrinsic valuation of the company and was higher than the market price of Zandu prevailing then and it also followed the relevant SEBI formula. Emami group also insisted that it did not go for a hostile takeover for Zandu and was informed by the Vaidyas that there was no first-right-of-refusal agreement between them and the Parikhs. Future of the open offer would decide next move by Imami, sources said. Meanwhile, the BSE has decided to replace Hindustan Copper Ltd with Zandu Pharmaceutical Works Ltd in the BSE-500 Index effective from July 17. The stock has been seeing small daily volumes but the delivery quantity has been very high indicating actual purchases. More Stories on : Stocks | Open Offers | Pharmaceuticals
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