Global drugmaker Mylan is delisting its Indian subsidiary, Matrix Laboratries. It has made an open offer of Rs 211 for delisting. The open offer seems to have been revised from the earlier indicated price of Rs 150, an increase of more than 40%. Mylan will shell a total amount of Rs 817.63 crore for an additional 24% stake. It currently holds a 71.2% in Matrix through MP Laboratories (Mauritius), while the founder N Prasad has a 5% stake.
Mylan is not the only MNC which had to revise its open offer against the backdrop of booming stock markets. Novartis, another global pharma major, recently upped its offer by more than 28%. The company has revised open offer price to Rs 450 per share from the original Rs 351
Bombay Stock Exchange has been up more than 75% since March this year, especially after the victory of Congress led strong pro-reform government on May 18. While markets were down, many MNCs were looking to delist or increase shareholding in Indian subsidiaries.
Other MNCs which have made open offer are drugmakers- Pfizer, Merck and Ciba, UK-based equipment maker Avery India and South Korean confectionery maker Lotte India.
Pfizer made an open offer of Rs 675 per share, which was at a premium to its trading price in the first week of April. The shares are presently trading between Rs 780-800.