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Elder Pharma soars 5 per cent on proposed deal

Elder Pharmaceuticals on Friday rallied nearly five per cent to hit one year high on BSE, a day after it made an offer to acquire UK-based NeutraHealth Plc for nearly 9.80 million pounds.

twitter-logoPTI | September 17, 2010 | Updated 13:44 IST

Elder Pharmaceuticals on Friday rallied nearly five per cent to hit one year high on BSE, a day after it made an offer to acquire UK-based NeutraHealth Plc for nearly 9.80 million pounds (about Rs 70.60 crore).

The Indian drug firm will execute the deal with NeutraHealth, in which it already holds 21.1 per cent, through its wholly owned subsidiary in Dubai and has offered a price of 6.5 pence per share.

Shares of Elder Pharma zoomed 4.78 per cent to touch a 52-week high of Rs 433.80 on the Bombay Stock Exchange.

The scrip witnessed a similar upsurge on the National Stock Exchange and soared 4.06 per cent to Rs 434.80 during early trade.

The broader market was also firm and the BSE benchmark Sensex was quoting at 19,588.11, higher by 182 points in the pre-noon trade.

Elder Pharma, which currently holds 21.1 per cent stake in NeutraHealth, said it has offered a price of 6.5 pence per share.

A simultaneous announcement regarding the acquisition was also made in London On Thursday, it said.

NeutraHealth focuses on the highly fragmented vitamins, minerals and supplements sector within the UK and Europe. It has three group companies, Biocare, Brunel Healthcare and Totally Nourish.

Elder Pharma's qualified institutional placement (QIP) of shares issues opened today. The company is reportedly looking to raise about USD 50 million through the QIP. The issue will end on September 21.

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