Daiichi says terms of open offer for Ranbaxy may change

By IANS,

New Delhi : Japanese drug maker Daiichi Sankyo Saturday said its open offer to acquire 92.5 million shares of Rs.5 each of Ranbaxy Laboratories, representing 20 percent of its paid-up capital, might under go a change.


Support TwoCircles

The company told a filing with stock exchanges that its draft letter to markets watchdog Securities and Exchange Board of India (SEBI) was submitted June 27 but the observations were still awaited.

“Hence, the schedule of activities as per the disclosure in the public announcement will undergo a change,” the filing said.

“The revised schedule of activities in respect of the offer pertaining to the acquisition of the equity shares of the target company (Ranbaxy Laboratories) will be announced separately, after receiving SEBI’s observations.”

ICICI Securities, the managers to the open offer, made the public announcement while Japan’s Nomura is the advisor for Daiichi Sankyo on the matter.

Ranbaxy’s takeover by Daiichi Sankyo was announced in June when Malvinder Singh and family agreed to sell their 34.8 percent stake in the company. The Indian drugs maker was intended to become a Daiichi subsidiary after the takeover.

The mega deal, the largest in India’s $7.3 billion pharmaceutical industry, was estimated to value Ranbaxy at $8.9 billion and catapult the combined entity as the world’s 15th biggest drugs maker from the current 22nd position.

The promoters of the group were to get Rs.95.76 billion ($2.4 billion) for their stake and along with open offer for 20 percent equity, Daiichi Sankyo was expected to spend an estimated $4.6 billion for the controlling stake.

SUPPORT TWOCIRCLES HELP SUPPORT INDEPENDENT AND NON-PROFIT MEDIA. DONATE HERE