Pfizer scrip jumps 18% on restructuring proposal

Written by fe Bureau | Mumbai | Updated: Feb 25 2014, 10:23am hrs
The Pfizer stock jumped as much as 18% on Monday after the company announced a restructuring plan where Pfizer East India BV, the Netherlands, would obtain a 29.52% stake held by Pfizer Investments Netherlands BV at R1,537 per share, which represented a premium of 47.68% over Pfizers closing price on Bombay Stock Exchange on Friday.

Pfizer, through the law firm AZB & Partners, announced via a regulatory filing that the top two stakeholders in the company, Pfizer Investments Netherlands and Pfizer Corp, Panama that hold 60.94% stake between the two of them, would divest their stake in the new company.

While Pfizer Panama would give its stake as a gift, no consideration, Pfizer Investments Netherlands would sell it at a premium.

The stock traded at weighted average price of R1,340.72 per share for 60 days preceding Mondays notice. Wyeths share price also jumped as much as 16% on the same announcement as its merger with Pfizer is set to complete in 2014. Pfizer Indias shares closed up 9.36% at R1,138.20 on BSE. More than 5.67 lakh shares changed hands on Monday on BSE and NSE. Wyeth closed up 7% at R759.80 on the BSE.