Pfizer Inc's Indian unit, Pfizer Ltd, is set to take over its local affiliate Wyeth Ltd. The announcement was made on Saturday after the boards of both companies approved the deal. This was according to a report published by Reuters today.
Under the terms of the merger deal, Wyeth shareholders will get seven shares of Pfizer Ltd for every 10 shares held. The announcement also stated that the deal will require the issue of around 25.9 million new shares of Wyeth, the report said.
At present, Wyeth Ltd's market capitalization is approximately USD294 million. Pfizer Inc already owns 51.12% of Wyeth. On the other hand, Pfizer Ltd's market capitalization is USD681 million. The company is 63.57% owned by Pfizer Inc, the report explained.
The Saturday announcement also said Pfizer and Wyeth would pay shareholders interim dividends of INR360 per and INR145 per share respectively, said the report.
Prizer sought advice from Bank of America Merrill Lynch on the deal. Wyeth was advised by Citigroup, Reuters reported.
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