| Publication : Telegraph
Provider : ABP Limited
July 15, 2004
Pharmacia-Pfizer merger swap ratio fixed at 1:5
Our Special Correspondent
Mumbai, July 14: A swap ratio of one share of Pfizer India Ltd for every
five of Pharmacia Healthcare has been fixed for the merger of the two
companies.
The amalgamation will create a pharmaceutical major with a presence in
cardio vascular, nutritionals, anti-infectives, cough preparations and
oncology segments.
While Pfizer India posted a total income of Rs 515 crore during the year
ended November 30, 2003 , the topline of Pharmacia Healthcare stood at over
Rs 30 crore.
While Pharmacia Healthcare's shares have a face value of Rs 5 apiece, Pfizer
India 's stand at Rs 10. The merger announcement saw the Pharmacia Healthcare
stock dipping over 10 per cent to Rs 102.85 from its previous close of Rs
114.65. Market analysts said the drop was to adjust for the swap ratio.
Pfizer India also dipped to Rs 451.25 from its previous close of Rs 455.
Pfizer Inc had acquired Pharmacia Healthcare in an April 2003 global merger.
While the operations of the two companies were integrated in the same year,
a legal clearance was awaited.
Following the global merger of Pharmacia Corporation and Pilsner Acquisition
Sub Corp, a subsidiary of Pfizer Inc, from April 16, 2003 , Pharmacia
Corporation became a wholly-owned direct subsidiary of Pfizer. Consequently, Pfizer Inc indirectly owned 75.10 per cent of Pharmacia
Healthcare.
The legal merger recently became a certainty when Pfizer India 's top
management said at its annual general meeting that while Pharmacia
Corporation has merged with Pfizer Inc globally, the board would consider a
legal merger of the company with Pfizer India . As part of the move, Pfizer
India stopped operations at its Ankleshwar plant.
It was also pointed out that the legal merger would be a win-win situation
for both companies with Pharmacia's strong product portfolio giving Pfizer a
larger market share.
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