US pharmaceutical company Pfizer Inc’s Indian unit said on Saturday that it will merge its subsidiary, Wyeth Ltd, into its own business, offering seven Pfizer India shares for every 10 shares of Wyeth.
Pfizer India also said it will be paying an interim dividend of Rs 360 per share to Pfizer shareholders and Wyeth Ltd will pay Rs 145 per share to its shareholders.
The total consideration for each share of Wyeth, calculated on basis of Pfizer’s closing price on Friday, amounts to a premium of 41 per cent over Wyeth’s closing price on Friday, inclusive of the dividend paid to Wyeth shareholders.
Wyeth has about 1.11 crore shares in the market. Pfizer — through Wyeth’s parent companies in the United States — owns about 1.16 crore shares, according to shareholding pattern as on September 30.
Pfizer said post the swap, about 15.9 million shares of Pfizer will be issued to Wyeth shareholders.
Pfizer India managing director Aijaz Tobaccowalla said the Wyeth sales representative team of about 320 people and the employee base of about 480 will be merged into the parent company and no significant restructuring is to be expected.
Post the merger, Pfizer India expects to be ranked ninth in India in the overall pharmaceutical market.
Bajaj Allianz Life Insurance and chemical manufacturer Atul Ltd own more than 5 per cent of Wyeth’s shares. Other investors which hold more than 1per cent stake include Life Insurance Corporation of India and UTI.