India impact

As Aventis SA holds 50.1 per cent stake in Aventis Pharma Limited in India, the Indian outfit is expected to witness a change in the ownership. As per the Sebi rules, the acquirer (Sanofi) will have to make an open offer to buy shares from other public shareholders following the change in the management.

The Indian subsidiary notched up a 5.8% rise in sales to Rs 651.6 crore during the year ended December 2003. Its net profit after tax and exceptional items was Rs 98.6 crore compared to Rs 61.1 crore – an increase of 61.4%. The major brands of the Indian company are: Cardace, Targocid, Clexane and Amaryl. Aventis Pharma stock closed at Rs 768.35 on the BSE last Friday. It had touched a 52-week low of Rs 251 last year. It has a market capitalisation of Rs 1,767 crore.

Earlier, Bayer CropScience bought out Aventis CropScience India. Bayer also made a voluntary offer to the public shareholders of Aventis CropScience to acquire 32.92pc of Aventis Crop. Bayer CropScience acquired 100% stake in Aventis CropScience Holding SA following an agreement with Aventis and Schering.