Elder Pharma to acquire UK's NeutraHealth for 9.80 mn pounds

NEW DELHI: Drug firm Elder Pharmaceuticals on Thursday said that it has made an offer to acquire UK-based NeutraHealth Plc for nearly 9.80 million pounds (about Rs 70.60 crore).

The deal will be executed through the company's wholly owned subsidiary in Dubai, Elder Pharmaceuticals said in a filing to the Bombay Stock Exchange (BSE).

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 has also been made on Thursday in London under rule 2.5 of the U K city code on mergers and acquisition, 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.

For the year ended March 31, 2010, NeutraHealth reported revenues of 34.6 million pounds.

In a separate filing to the BSE, Elder Pharma said its qualified institutional placement (QIP) issue will open tomorrow with the floor price at Rs 414 per share, thus setting the price band for the issue between Rs 415 and Rs 419. The company is reportedly looking to raise about USD 50 million through the QIP.

The QIP will close on September 21, 2010, it added. Shares of Elder Pharma on Thursday closed at Rs 414 on the BSE, down 0.53 per cent from its previous close.