The Hindu : Cadila to buy out GRL

Online edition of India's National Newspaper
Friday, Apr 19, 2002

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Business

Cadila to buy out GRL

By Our Staff Correspondent

MUMBAI APRIL 18. The board of directors of Cadila Healthcare will make an open offer to the public shareholders of German Remedies (GRL) at a price of Rs. 300 per share.

The open offer which is slated to open on June 6, would look at acquiring the entire public shareholding of 44.6 per cent in GRL. Zydus Cadila along with its wholly owned subsidiary, Recon Healthcare Ltd., at present holds 55.4 per cent. In the event of Zydus Cadila's shareholding crossing 90 per cent through the open offer, it will seek delisting of GRL which is listed on Bombay, Delhi and the National stock exchanges.

The offer is at a premium of 14.78 per cent to GRL's last 26 weeks average price pegged at Rs. 261.38 and at a premium of 16.15 per cent to the last four week's average price of Rs. 258.29.

This provides shareholders of GRL an opportunity to monetise their shareholding in the company. Pankaj Patel, chairman and managing director, Zydus Cadila, said, "In consonance with the international best practices and the group philosophy, we believe that there should be only one single listed entity in the group, especially with respect to companies in similar competing lines of business.

This exercise would seek to protect the interests of shareholders of both companies and achieve complete alignments of interests".

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