European healthcare company?Fresenius Kabi, which acquired 73.3% control of Dabur Pharma a few days ago, on Monday announced a public offer to purchase further 20% stake in the domestic drug company at a price of Rs 76.50 per share.
”The open offer would be made through investment banker Morgan Stanley,” Fresenius Kabi president and CEO Rainer Baule said.
”Under the new ownership, I am confident we will maintain this momentum. We are looking forward to tap into the global knowledge pool, experience and footprint of the Fresenius group to realise the potential of our oncology business,” Dabur Pharma CEO Ajay Kumar Vij said.
The deal for control of the company cost? Fresenius Kabi Rs 878.2 crore and the open offer, if fully subscribed, would cost the new owner around Rs 240 crore.
Fresenius Kabi said the buyout will be entirely debt financed from funds that have? already been procured.
According to Baule, the European firm will invest about $60 million towards marketing expenses every year and a majority of this would be spent on expanding Dabur Pharma’s onclogy business across the globe.
Besides, the company will pump in an additional $10 million in increasing the production capacity of Dabur Pharma’s active pharmaceutical ingredients (API) plant situated near Kolkata.
