Bayer Announces Open Offer To Buy 26% Stake In Monsanto India
The offer price is at a 4 percent premium to Tuesday’s closing price.
German pharmaceutical and chemicals maker Bayer Aktiengesellschaft, commonly known as Bayer AG, has made an open offer to public shareholders of Monsanto India Ltd. to acquire 44,81,315 equity shares for Rs 2,481.6 per share, the latter said in a stock exchange filing. The offer price is at a 4 percent premium to Tuesday’s closing price.
DSP Merrill Lynch and Credit Suisse Securities (India) will manage the open offer on behalf of the Bayer group, according to the company’s exchange filing.
The open offer is the result of Bayer’s acquisition of Monsanto Company. On September 14, 2016, Bayer AG had acquired Monsanto Company, parent of Monsanto India, for $128 per equity share.
Public shareholding in Monsanto India stands at 27.86 percent, while the open offer is for 26 percent stake. If the open offer is successful, the minimum public shareholding in the company will fall below the statutory limit of 25 percent.
Monsanto shares surged 10.4 percent on September 14, 2016, but after the announcement of the acquisition, share prices slumped for four straight days, declining as much as 7 percent.
