Business Daily from THE HINDU group of publications
Friday, Sep 08, 2006
Business Daily from THE HINDU group of publications Friday, Sep 08, 2006 |
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Markets
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Stocks Corporate - Outlook Jayanta Mallick
Kolkata , Sept. 7 Shareholders of Bayer Diagnostics India, which is being taken over by the Siemens AG, as part of the global takeover, are awaiting a special "interim" dividend before the open offer for 20 per cent stake in the company comes up. The reason for the special dividend is that the acquirer is not taking over the diabetes care business of Bayer Diagnostics India. (Simens AG is buying only the human in-vitro diagnostics business from Bayer AG). In India, the diabetes-related business of Bayer Diagnostics has been bought over by Bayer Material Science, a private outfit of the group operating in the country, for Rs 25.74 crore. The entire proceed is scheduled to be distributed as dividend to the existing shareholders of Bayer Diagnostics India on a pro-rata basis under the share purchase agreement.
Market estimates
According to market estimates, the dividend could be in the region of Rs 126 per share. In a recent communication to the shareholders, Bayer Diagnostics India had confirmed that the company intends to declare interim dividend to the extent of the proceeds of sale of diabetes care business comprising blood glucose monitory systems and sensors as also urine glucose monitoring strips. Bayer group through an overseas outfit — Health Care LLC — currently holds 32.67 per cent in Bayer Diagnostics India. The present holding of Bayer Crop Science, the other listed entity of the group in India, is 18.33 per cent. Dr Virendra Jashbhai Patel, till now the Chairman Emeritus and non-Executive Director of Bayer Diagnostics, and his family members have a stake of 10 per cent in the company. The public holding is placed at 33.52 per cent of the total 15.67 lakh shares.
Little movement
The price for open offer, which has been delayed for certain technical reasons, has been fixed at Rs 629.24 per share — the same price at which Siemens purchased the stake from the two Bayer outfits. In its last communication to the stock exchange, the company had informed,"In terms of Regulation 18(1) of the SEBI Takeover Regulations, the draft Letter of Offer had been submitted to SEBI on July 17, 2006 and observations from SEBI in terms of Regulation 18(2) of the SEBI Takeover Regulations have yet to be received and are awaited. However, the process has delayed the earlier announced Schedule of Activity and the revised Schedule of Activity will be announced separately." Meanwhile, the stock of Bayer Diagnostics is showing little movement or volume as all are waiting for the dividend followed by the open offer.
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