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Organon makes open offer for 24% of Infar India

Organon Participations BV, a unit owned by Dutch chemical group Akzo Nobel NV, is making an open offer to buy 24.04 per cent of Indian pharmaceuticals company Infar India, its merchant banker said on Wednesday.

It has offered to buy 1,460,965 shares at Rs 285 a share -- a premium of 19 per cent to the stock's closing price on Tuesday.

This follows an agreement by Organon with the Indian founders of the company to acquire 25.53 per cent of Infar's shares at Rs 285, managers to the issue HSBC Securities and Capital Markets India said in a statement.

After the acquisition, Organon's stake in the company will rise to 75.96 per cent, it said.

It said the offer will open from September 14 to October 13.

Organon is wholly owned by Akzo Nobel through two fully owned holding companies.

The company will make a second offer to acquire the remaining equity shares within three months of close of the offer if the public shareholding falls below 10 per cent after the first offer, the issue manager said.

Subsequently an application will be made to delist the company's shares, it said. The stock is listed on the National Stock Exchange and the Calcutta Stock Exchange.

In afternoon trade the stock was up 8.0 per cent at Rs 258.50 at the National Stock Exchange, while the benchmark National Index was 0.95 per cent down.

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