Novartis offer to increase stake in Indian subsidiary at 27% premium

Basel, Switzerland-headquartered Novartis has announced a tender offer to acquire an additional stake of up to around 39% in its majority-owned  Indian subsidiary, Novartis India Ltd, from public shareholders at a  price of 351 rupees per share. The offer has been made at a premium of  27% to the closing price of 275.6 rupees of Novartis India on March 24,  the last trading day before the announcement, and represents a premium  of 35% over the Indian firm's average share price during the last month.

Successful completion of this offer (assuming full acceptance) would  raise the stake of the Swiss drug major in its Indian subsidiary to  nearly 90% from the current level of 50.9%. The offer represents a total  value of up to 4.4 billion rupees ($87.1 million).

A public announcement is being published in India as required by law.  The offer for these shares, which are traded on the Bombay Stock  Exchange, is expected to open in May 2009 and is subject to regulatory  approvals.