Pfizer made 52-week high on announcement, on news that it is to merge with wyeth for creating single Pfizer brand, to expand across multiple therapeutic categories
Pfizer India Ltd (Pfizer) and Wyeth India Ltd (Wyeth), said their board of directors in their respective meetings on Monday, approved a proposal to merge Wyeth with Pfizer.
Based on the proposed merger swap ratio, Pfizer will issue around 1.59 crore new equity shares to Wyeth shareholders, as consideration for the merger. The shareholders of Wyeth will get seven shares of Pfizer for every ten shares of the company (Wyeth).
“The combined entity would have an increased therapeutic presence and a de-risked business profile. The merger process would require several approvals and we anticipate this will take approximately another nine months,” said Aijaz Tobaccowalla, managing director, Pfizer and Wyeth.
Pfizer and Wyeth are going to merge for creating a single Pfizer brand. It will help company to strengthen the India operations through expansion across multiple therapeutic categories, unifies management focus and combines the talent pool, Increases long-term value for all stakeholders.
Pharmaceuticals companies Pfizer and Wyeth have also announced an interim dividend of Rs360 per share and Rs145 per share respectively.
The merger process is expected to be completed in over next nine months after getting the key approvals from shareholders of Pfizer and Wyeth. Approvals from SEBI, stock exchanges, Foreign Investment Promotion Board (FIPB), Jurisdictional High Court of Bombay are required for the merger as well.
On Monday, Pfizer hits its 52-week high at Rs1,648 before closing 12.14% up at Rs1,605 while Wyeth ended the day 13.6% higher at Rs924.80 on BSE. The BSE 30-share benchmark closed 387 points up at 20,605.
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