Bayer launches open offer to buy up to 26% in Monsanto India

New Delhi, September 20

German pharma and chemical major Bayer group today announced mandatory open offer to buy up to 26% additional stake in the Monsanto India Ltd for over Rs 1,100 crore following its global deal to acquire US-based biotech major.

In the open offer, Bayer will acquire up to 44,88,315 shares of Monsanto India Ltd from public shareholders at a price of Rs 2,481.60 apiece.

The offer price is 4% higher than the Monsanto India’s closing rate of Rs 2,390 per share today on the BSE.

On September 14, Bayer AG announced acquisition of Monsanto for $66 billion to create the world’s biggest seed and pesticide firm.

After completion of the proposed deal, Bayer group will be indirectly acquiring the 72.14% voting share capital of the Monsanto India, triggering into launch of an open offer for the shareholders of the Monsanto India Ltd.

Monsanto group holds 72.14% stake in the Monsanto India Ltd as on June 30, 2016, according to regulatory filing.

Monsanto India Ltd informed that DSP Merrill Lynch Ltd and Credit Suisse Securities (India) Pvt Ltd have issued public announcement for the open offer on behalf of Bayer group. pti