Glenmark Life Sciences stock: Nirma announces open offer at Rs 631.20 per share

Glenmark Life Sciences Ltd in a BSE filing on Friday said Nirma Limited has announced an an open offer for acquisition of up to 2,12,77,736 shares of the company with a face value of Rs 2 each, representing 17.33 per cent of the of the Voting Share Capital of Glenmark Life Sciences from public shareholders. The open offer price is set at Rs 631.20 per share, in accordance with the SEBI (substantial acquisition of shares and takeovers) regulations, 2011.

The letter of offer is being sent to all public shareholders, whose names appear on the register of members of the Glenmark Life Sciences, at their stated address or at their registered email addresses as of the identified date, i.e. February 1, 2024, Glenmark Life Sciences told stock exchanges. The offer will open on February 15 and conclude on February 29.

The company had earlier in its earnings call said the it had received approval from Competition Commission of India (CCI) and was waiting for some more approvals for completion of the open offer and so on. "Now, once these steps are finalised and the deal is complete, we will proactively communicate to you providing clear insights into our future strategy. Till then, I request your patience on this subject," MD and CEO Yasir Rawjee said recently.

Nirma had entered into a share purchase agreement dated September 21, 2023, with the Glenmark Pharmaceuticals and the target company Glenmark Life Sciences, whereby it agreed to acquire 9,18,95,379 shares, representing 74.84 per cent of the Voting Share Capital, subject to and in accordance with the terms and conditions contained in the SPA. The price payable by the acquirer to the seller was Rs 615 per sale share, aggregating to Rs 5651,56,58,085.

"Pursuant to the declaration of an interim equity dividend of Rs 22.50/- (Indian Rupees twenty two and Paise fifty only) per Equity Share (“Dividend”) by the board of directors of the Target Company on October 9, 2023 (the record date for which is October 17, 2023), the price payable by the Acquirer to the Seller stands adjusted to Rs 592.50 (Indian Rupees five hundred and ninety two and Paise fifty only) per Sale Share, aggregating to INR 5444,80,12,057.50/- (Indian Rupees five thousand four hundred and forty four crore eighty lakh twelve thousand and fifty seven and Paise fifty only) ("Sale Consideration”)," it said.

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