Bayer Crop Shares Jump 4% on Rs 2,207 Cr Promoter Block Deal
Bayer CropScience shares jumped 4% intraday on 8 July after a Rs 2,207 crore promoter block deal between Bayer AG and Bayer CropScience AG. Here is what happened. Bayer AG, the German parent company, agreed to buy 53,54,030 equity shares, amounting to 11.91% of Bayer CropScience, from another group entity... The post Bayer Crop Shares Jump 4% on Rs 2,207 Cr Promoter Block Deal appeared first on Equitypandit.
Bayer CropScience shares jumped 4% intraday on 8 July after a Rs 2,207 crore promoter block deal between Bayer AG and Bayer CropScience AG.
Here is what happened. Bayer AG, the German parent company, agreed to buy 53,54,030 equity shares, amounting to 11.91% of Bayer CropScience, from another group entity called Bayer CropScience AG.
The shares changed hands at an average price of Rs 4,122 apiece, taking the total deal value to Rs 2,207 crore.
Since both the buyer and the seller belong to the same promoter group, this is being treated as an internal transfer rather than a fresh acquisition by an outside investor.
As a result, Bayer AG does not need to make an open offer to public shareholders, a requirement that normally kicks in when a company’s stake changes hands significantly.
The exemption falls under Regulation 10(1)(a)(ii) of SEBI’s takeover rules. The price paid was also capped by regulation.
Filings show the 60-day volume weighted average price worked out to Rs 4,434 a share, and the deal price could not exceed that figure by more than 25%.
Once the transfer is complete, Bayer AG’s stake in the company will rise from 8.43% to 20.34%, while Bayer CropScience AG will exit fully, dropping to zero.
The overall promoter group holding stays unchanged at 71.43%, since the shares have simply moved from one arm of the group to another.
The disclosure was signed off on 1 July by authorised signatories Markus Goblet and Dr Sven Vorstius. It has been a rough year for the agrochemicals major.
The stock is down more than 35% over the past 12 months and sits well below its 52-week high of Rs 6,511, touched in July last year. It’s trading at Rs 4,171.20 as of 10:36 am, up 1.19% on the day.
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The post Bayer Crop Shares Jump 4% on Rs 2,207 Cr Promoter Block Deal appeared first on Equitypandit.
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