Emami Ltd, which picked up a 27.5% stake in Zandu Pharmaceuticals and is now awaiting the clearance of the Securities & Exchange Board of India (Sebi) on the open offer to mop up at least 20% more Zandu shares, is drawing up a ?detailed finance plan? to complete the acquisition.
At the company?s 25th annual general meeting here on Monday, chairman RS Agarwal told shareholders that the majority funding of the Zandu acquisition will come from internal accruals and the rest from ?loans and other resources?.
Agarwal said, ?A detailed finance plan is being done and I assure you that it is being done very judiciously.? Later, Harsh V Agarwal, director, Emami Group of companies, told reporters, ?We are not looking at revising our open offer price.? Emami is offering Rs 7,315 a share.
He said talks were going on with the Zandu management so ?that we can share management together,? adding, ?there?s nothing fruitful yet.?
Both sides are waiting for the Company Law Board?s judgment on how the dispute should be sorted out. The Mumbai Bench of the CLB finished hearing both sides of the argument last Wednesday.
On Monday, Emami Ltd closed at Rs 297 on the BSE, down 0.6% from Friday?s close. Zandu closed down 1.98% at Rs 15,077.45.
Asked whether Emami had complained to anybody over the high Zandu price, Agarwal said, ?No, we haven?t gone to anybody yet. We are hopeful the dispute will be sorted out soon.?