Shares of Novartis India Ltd are set to be in focus on Friday as promoter Novartis AG has agreed to sell its entire 70.68% stake in the company. The stake will be acquired by WaveRise Investments, ChrysCapital Fund X, Two Infinity Partners, ChrysCapital X LLC, and OceanEdge Investments Limited. This transaction has triggered an open offer for additional shares.
The open offer price has been set at Rs 860.64 per share, representing a 3.64% premium over Thursday’s closing price of Rs 830.45. As part of the deal, Novartis India has proposed to enter into a covenant and warranty deed with the seller and acquirers, which the company’s board approved and executed. Promoter Novartis AG will divest 1,74,50,680 shares, equating to 70.68% of its stake in the company.
Novartis India stated that it has provided certain customary warranties on a non-recourse basis to the acquirers concerning the company’s business and operations. The company also agreed to assist the new owners with information related to the mandatory open offer for the benefit of public shareholders.
Additionally, Novartis India plans to change its name within 120 days of the transaction’s completion to remove all references to the seller group. The company also committed to fulfilling post-closing obligations, including necessary regulatory filings related to the deal.
Details of the Open Offer
Under the open offer, the acquirers intend to purchase up to 64,19,608 fully paid-up equity shares of Rs 5 face value each, representing 26% of the voting share capital, at Rs 860.64 per share. The total maximum consideration for the offer is approximately Rs 552.49 crore, payable in cash, subject to the terms and conditions outlined in the public announcement.
