Daiichi awaits SEBI nod for launching open offer for Ranbaxy

Mumbai: Japanese drug maker Daiichi Sankyo, which agreed to buy the 34.8 per cent promoter stake in Ranbaxy Laboratories, has deferred its open offer for 20 per cent more in the Indian pharmaceutical giant for want of clearance from market regulator Securities and Exchange Board of India.

Daiichi's said in a filing with stock exchanges that the schedule of its open offer might change as it was yet to hear from market watchdog Securities and Exchange Board of India (SEBI) on its draft letter submitted on 27 June.

The open offer to acquire 92.5 million shares of Ranbaxy Laboratories, at Rs737 a share, was to start on 8 August and close on 20 August.

The promoters were to get Rs9,576 crore ($2.4 billion) for their stake, and, along with open offer for 20 per cent equity, the acquisition was expected to cost Daiichi Sankyo about $4.6 billion.

Daiichi clarified that there was ''no hesitation'' on the part of the company to go ahead with the $4.6 billion (Rs19,550 crore) deal and that the revised schedule of the offer will be announced separately, after receiving SEBI's observations.

ICICI Securities manages the open offer while Japan's Nomura is the advisor for Daiichi Sankyo on the matter.

Ranbaxy's takeover by Daiichi Sankyo would create an entity that would be the world's 15th biggest drugs maker against the current 22nd position.

Ranbaxy will continue to operate as an independent unit, but as a subsidiary of Daiichi, after the takeover.

The $7.3 billion deal, the largest in Indian pharmaceutical industry, values Ranbaxy at $8.9 billion.