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Tuesday, 1 May 2018

Financial results: Merck net profit surges by 53% to Rs. 23 cr in Q1, Procter & Gamble to acquire 51.8% stake

Merck Ltd, a Rs. 1,100 crore MNC in India, has posted net profit growth of 53.1 per cent during the first quarter ended March 2018 to Rs. 22.71 crore from Rs.14.83 crore in the
corresponding period of last year. Its net sales increased by 27.1 per cent to Rs. 301.17 crore from Rs. 236.92 crore. Its pharmaceutical sales increased by 22.4 per cent to Rs. 230.22 crore from Rs.188.15 crore and that of chemicals increased by 45.4 per cent to Rs. 70.95 crore from Rs. 48.78 crore. EPS improved to Rs. 13.68 from Rs. 8.93 in the last period. 

Procter & Gamble Overseas India BV together with the Procter & Gamble Company (P&G Group) set to acquire 85.99 lakh equity shares of Rs. 10 each of Merck Ltd representing 51.80 per cent of the voting share capital for an aggregate purchase price consideration of up to Rs. 1,289.88 crore. The acquirer is set to acquire 4,315,840 equity shares of Rs. 10 each constituting 26 per cent of the total outstanding capital of Merck Ltd (India) through open offer for a price of Rs. 1,500.36 each (Rs. 647.53 crore). 

Merck share improved by Rs. 205 and closed at Rs.2,111.05 today on BSE, after touching at yearly peak level at Rs. 2,160.      

Merck is planning to transfer certain businesses comprising exclusively of the biopharma, performance materials and life sciences (BPL) segments to Merck Life Science Pvt Ltd for a consideration of Rs. 1,052 crore after shareholders and other statutory approvals. In order to seek the approval of the shareholders of the company, the board has approved the postal ballot notice and constituted committee of independent directors. After committee's recommendations it will move forward with the open offer for shareholders