Pfizer shares zoom nearly 9% on Allergen deal

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Mumbai | Updated: November 24, 2015 4:44:16 PM

Shares of Pfizer rose sharply by nearly 9 per cent intraday on Tuesday after its parent Pfizer Inc's announcement to buy Botox manufacturer Allergan in a record $160 billion deal, a biggest buyout in the global healthcare sector.

The stock soared 8.63 per cent to Rs 2,648 on BSE. On NSE, shares jumped 8.29 per cent to Rs 2,645.Shares of Pfizer rose sharply by nearly 9 per cent intraday on Tuesday after its parent Pfizer Inc’s announcement to buy Botox manufacturer Allergan in a record 0 billion deal, a biggest buyout in the global healthcare sector.

Shares of Pfizer rose sharply by nearly 9 per cent intraday on Tuesday after its parent Pfizer Inc’s announcement to buy Botox manufacturer Allergan in a record $160 billion deal, a biggest buyout in the global healthcare sector.

The deal will technically see Dublin-based Allergan buying its much larger partner. It will allow New York-based Pfizer to shift base to Ireland for tax purposes.
Allergan shareholders will receive 11.3 shares in the combined company for each share held.

Pfizer investors will be able to opt for cash instead of stock in the combined company in exchange for their shares, provided the aggregate amount of cash to be paid is not less than $6 billion or more than $12 billion.

As per the definitive merger agreement that has been approved by the Boards of the two companies, Pfizer will combine with Allergan in a stock transaction currently valued at $363.63 per Allergan share, for a total enterprise value of approximately $160 billion, Pfizer said in a statement yesterday.

Later the scrip closed 2.59 per cent up at Rs 2500.70.

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