Wockhardt, which had in late February bought out the Tatas' 50 per cent stake in Merind for a consideration of Rs 47 crore, had made an open offer to all the remaining Merind shareholders at Rs 260 per share. The offer price represented a premium of over 40 per cent on the Merind stock price at that time. Though the exact response to the offer in terms of figures was unavailable, sources indicated that over 80 per cent of the remaining 50 per cent shareholders in Merind had responded to the offer. This includes institutional holders like GIC and New India Assurance.

Financial institutions and FIIs together held 18 per cent of Merind's equity capital while the public holding was approximately 28 per cent.

The overwhelming response to the open offer, sources added, would seethe delisting of the Merind scrip from the exchange, after delisting formalities laid down by Sebi were complied with.

At Rs 260 per share, Wockhardt would have to fork out Rs 94 crore for a 100 per cent stake in Merind. The acquisition cost is being funded partly by debt and partly by internal accruals.

Though Sebi's takeover regulations only required the acquirer to purchase up to a maximum of 20 per cent of the remaining shares, Wockhardt had decided to buy the remaining 50 per cent shares outstanding "to enhance shareholder value and give Merind's minority shareholders a fair deal". Wockhardt plans to consolidate the entire sales and profits of Merind, thereby ensuring value creation and quick and adequate return on investment to shareholders.

At the time of the takeover, the Wockhardt management had indicated that if the offer price of Rs 260 per share did not evoke a 90 per cent response, the company may consider making a second offer subsequently, failing which shareholders who do not wish toavail themselves of the offer can continue to hold shares in Merind as a private firm.