February 2010
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Abbott makes open offer for 20 pc in Solvay Pharma India

US-based pharmaceutical firm Abbott Laboratories on Wednesday announced completing the acquisition of the global drug business of Solvay SA, consequent to which it has made an offer to acquire 20 per cent of Solvay's India business.

Abbott Capital India and Abbott Laboratories have made an open offer to acquire 10.09 lakh shares of Solvay Pharma India at Rs 3,054.73 per share, Solvay Pharma India said in a filing to the Bombay Stock Exchange.

The offer would aggregate an outgo of Rs 308 crore. It will open on April 7 and close on April 26. DSP Merrill Lynch Ltd is the banker to the offer.

Solvay Pharma India scrips were trading at Rs 2885.90, up 1.11 per cent from the previous close in the afternoon trade on the BSE.

Earlier in the day, Abbott said it has closed an agreement to acquire the global pharmaceutical business of Brussels-headquartered Solvay Group for euro 5.2 billion (about Rs 32,951 crore)

“This includes first cash payment of euro 4.5 billion and additional cash payment of up to euro 300 million if the specific milestone are met between 2011 and 2013,” Solvay said in a statement without disclosing details of the deal.

Based on the timing of the close, Abbott expects the acquisition to add approximately USD 2.9 billion to its total reported sales in 2010, and add approximately USD 500 million to Abbott's annual pharmaceutical R&D investment.

Following the transaction, Solvay has agreed not to pursue any pharmaceutical activities.

Source: Economic Times

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