German healthcare products major B Braun, which acquired majority stake in public-listed formulations and healthcare consumables firm Ahlcon Parenterals (India) Ltd two years ago, has now made a delisting offer.
It has sought to buy the remaining 25 per cent equity held by the public shareholders in the company at a floor price of Rs 269 a share, as per a stock market disclosure. This is just about half the current market price.
At the floor price, Braun would need to spend approximately Rs 48.42 crore (nearly $8 million) to complete the buyout and at the current market price it would have to shell out $16 million.
B Braun currently owns 75 per cent stake in Ahlcon.
It needs to cross the 90 per cent stakeholding threshold to delist Ahlcon for which it would have to shell out at least RS 58 crore ($9.5 million).
What's notable is that of the 25 per cent public holding, 18 per cent is held by former promoter group of Ahlcon led by Bikramjit Ahluwalia. If the Ahluwalia family sides with B Braun, the German firm can see through the delisting offer even if none of the other minority public shareholders tender their shares in the offer.
The offer is scheduled to open on October 29 and will close on October 31, 2014.
Presently, Ahlcon is listed on BSE besides regional exchanges such as Delhi Stock Exchange, Calcutta Stock Exchange and Jaipur Stock Exchange.
B Braun had acquired majority stake in Ahlcon two years ago from Ahluwalia family and had later come with an open offer at Rs 460 a piece. This offer, which was at a premium to the then market price, was largely successful, which allowed B Braun to get 75 per cent holding.
New Delhi-based Ahlcon is engaged in manufacturing and selling pharmaceutical intravenous (IV) fluids and ophthalmic/ear drops in India.
(Edited by Joby Puthuparampil Johnson)