Bayer group came out with a mandatory open offer to the shareholders of Monsanto India. The German pharma and chemicals major plans to acquire an additional 26 per cent stake in the Monsanto for ₹1,100-crore.
The open offer was necessary following its global deal to acquire US-based Monsanto.
Bayer came out with open offer to acquire up to 44.88 lakh shares of Monsanto India from public shareholders at ₹2,481.60 apiece. Shares of Monsanto on Tuesday closed at ₹2,396.25 a share on the BSE.
On September 14, Bayer AG announced acquisition of Monsanto for $66 billion. The deal will result in the Bayer group indirectly acquiring the entire shareholding of 72.14 per cent of Monsanto group in Monsanto India, thus triggering the mandatory open offer.
To clinch the deal, Bayer had to revise its offer several times. From an initial offer price of $122 a share, the company had finally sealed the deal with $128 a share offer to Monsanto’s promoters. The global deal is expected to close by the end of 2017.
Forty foreign portfolio investors hold 3.75 per cent stake in Monsanto India, while 21 mutual funds have exposure to the tune of 3.51 per cent stake in the seeds major. Among them, Government Pension Fund Global controls 1.31 per cent stake.
Close to 20,000 small retail investors own 11.83 per cent stake in the company while four high networth individuals (categorised as owning shares in excess of ₹2 lakh) hold 3.02 per cent stake.
On Tuesday, shares of Bayer India closed at ₹4,093.1, on the BSE.