Bayer Aktiengesellschaft on Tuesday announced an open offer for acquiring 44.9 lakh shares or 26% of the paid-up capital of Monsanto India for Rs 1,111 crore at Rs 2,481.60 per share. The open offer price is 3.5% more than Monsanto India’s Tuesday closing price of Rs 2,396.
The open offer was made following Bayer’s decision to acquire Monsanto India’s parent , Monsanto Company for $ 66 billion. Bayer will be indirectly acquiring 72.14 % of Monsanto India after the completion of the acquisition. DSP Merrill Lynch and Credit Suisse Securities (India) have been appointed as managers for the offer.
Both Bayer and Monsanto have a presence in India with Monsanto selling genetically modified (GM) cotton seeds in the country for more than a decade.
Monsanto’s rival Syngenta was acquired by China’s state-owned firm ChemChina recently.