Pfizer shares zoom nearly 9% on Allergen deal

Mumbai: Shares of Pfizer Ltd rose sharply by nearly 9 percent Tuesday after its parent Pfizer Inc's announcement to buy Botox manufacturer Allergan in a record USD 160 billion deal, a biggest buyout in the global healthcare sector.

The stock soared 8.63 percent to Rs 2,648 on BSE.

On NSE, shares jumped 8.29 percent to Rs 2,645.

The deal will technically see Dublin-based Allergan buying its much larger partner. It will allow New York-based Pfizer to shift base to Ireland for tax purposes.

Allergan shareholders will receive 11.3 shares in the combined company for each share held.

Pfizer investors will be able to opt for cash instead of stock in the combined company in exchange for their shares, provided the aggregate amount of cash to be paid is not less than USD 6 billion or more than USD 12 billion.

As per the definitive merger agreement that has been approved by the Boards of the two companies, Pfizer will combine with Allergan in a stock transaction currently valued at USD 363.63 per Allergan share, for a total enterprise value of approximately USD 160 billion, Pfizer said in a statement yesterday.