Daiichi acquires 52.5 per cent in Ranbaxy

Daiichi Sankyo has acquired a 52.5-per cent stake in India's largest pharmaceutical company Ranbaxy Labs, after its board approved preference allotment of shares and warrants to Daiichi. Daiichi Sankyo has acquired 8.19 crore shares from Ranbaxy promoters and now becomes a subsidiary of the Japanese drug firm.

Malvinder Singh, CEO of Ranbaxy Labs, said a significant chunk of promoter stake has been transferred in what is entirely an off-market transaction, adding that the remaining would be transferred in the next few days. Ranbaxy will pay tax on transaction as per the applicable rate, Singh added.

Just walk us through the dynamics now, it's a done deal finally, Ranbaxy becomes a subsidiary of Daiichii?
Yes it is; we have concluded the preferential equity for Daiichi Sankyo from Ranbaxy and also a certain amount of warrants that they will be applying for that money has come in to the company.

We have also sold a significant part of our stake to Daiichi Sankyo as a part of the process which gets them to a 50 per cent plus share holding at the company and the remainder part of our stake will happen over the next few days as well so that will then conclude the transaction at that point in time.

Can you just confirm with us whether the entire promoter stake has been transferred and this has been an off-market transaction?
It is an off-market transaction, the entire promoter stake has not been concluded. We have done a significant chunk of it, the balance will happen in a next few days but it will remain off-market and then it will get closed after that. 

So of the 52.5 per cent that Daiichi has acquired from Ranbaxy, how much is the promoter share?
They have taken around Rs8.2 per cent worth of crore shares from us at this point in time and the balance of the Rs13 crore worth, the Rs5 crore odd shares will get transferred to them in the next few days. 

So you have the balance?
It will get transferred in the next few days. 

Will that be an off-market transaction?
 Yes it will be an off-market transaction the way we have done the transaction today.

There were a lot of questions on what happened with the taxation front, has that been resolved for Ranbaxy promoters in specific? 
The taxation part is linked to the family and we will be paying tax on this on whatever the tax maybe.
 
Any headway on what's happening with the US FDA?
We have been continuously engaged with them, the dialogue and things are moving forward. At the right time, we will come back and share with you where we are on that.