Securities Tribunal asks Daiichi to offer Rs160 per Zenotech share

The Securities Appellate Tribunal (SAT), the top forum for appeals against SEBI's decisions, yesterday ruled in favour of Zenotech Laboratories Ltd (Zenotech), manufacturer of generic biopharmaceuticals, in its ongoing dispute over the price of the open offer by Daiichi Sankyo Co Ltd (Daiichi), the Japanese drug maker, which acquired the Hyderabad-based pharma firm through its acquisition of Ranbaxy last year  (See: Daiichi Sankyo completes Ranbaxy acquisition)

Daiichi, through its acquisition of controlling stake of 64 per cent in Ranbaxy Laboratories last year, holds 47 per cent stake in Zenotech.

SAT has directed the Japanese drug firm to make an offer of Rs160 per share of Zenotech.

Early this year, Daiichi had offered to purchase upto 68,85,000 fully paid-up equity shares of the Zenotech, representing 20 per cent of the current paid up equity share capital at a price of Rs113.62, even though  the Daiichi board had made the offer of Rs160 in July 2008.

With the stock markets haveing fallen subsequently, Zenotech shares have been hovering around 115 per share.The promoter of Zenotech objected to the offer, although SEBI had approved the offer price and caled upon the Japanese firm to honour its pricing commitment made in July 2008 (See: Ranbaxy affiliate Zenotech objects to open offer pricing )

Daiichi was forced to suspend the open offer in July, following an injunction from the Madurai bench of the Madras High Court.