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SEBI clears Zydus offer price for German Remedies

Our Bureau

MUMBAI, July 6

THE Securities and Exchange Board of India (SEBI) has given Zydus Cadila permission to proceed with the open offer for German Remedies Ltd (GRL) at the original offer price of Rs 650 per share.

SEBI rejected a complaint filed by some minority shareholders that the price of Rs 650 offered by Recon Healthcare Ltd, a subsidiary of Zydus Cadila, to Asta Medica was not the correct negotiated price. Zydus will proceed with the public offer for acquir ing 20 per cent in GRL at a price of Rs 650 per share.

SEBI has held that the acquisition of brands by Zydus Cadila from Asta Medica and acquisition of shares from the two German firms are two different transactions.

Zydus, through its wholly-owned subsidiary Recon Healthcare Ltd, acquired a combined 27.72 per cent stake from Asta Medica AG Asta) and Heller Vermogensverwaltungs GmbH (Heller) in GRL at a price of Rs 650 aggregating Rs 148.6 crore.

And the consideration paid by Zydus for acquisition of five brands for a sum of Rs 52.55 crore from Asta Medica had been independently valued by an expert and is not open to questioning by SEBI, according to the SEBI order.