Daiichi to make open offer for Ranbaxy on August 8
16 Jun 2008
Mumbai: Japanese drug maker Daiichi Sankyo Company, which struck a deal with Ranbaxy promoter group to acquire a 34.8 per cent stake in Ranbaxy Laboratories, now proposes to make an open offer for another 20 per cent in the Indian pharma major for up to Rs6,818.65 crore.
Daiichi Sankyo has offered to acquire up to 92.1 million shares, representing 20 per cent stake in Ranbaxy at a price of Rs 737 each, at a premium of over 50 per cent to the average price of the stock during the last three months, the company said in an announcement to the shareholders.
On completion of the acquisition, Daiichi would reconstitute the board of directors of the company with 10 members, of which a combination four independent and non-independent directors would be nominated by Ranbaxy, while the rest six would be named by Daiichi Sankyo.
"Malvinder Mohan Singh will remain the chief executive and managing director of Ranbaxy Laboratories and will also become the chairman of the board," the release stated.
Daiichi said it would send offer letters to shareholders whose name appear in the book on June 27.
The offer is scheduled to open on August 8 and close on August 27, it added.
ICICI Securities is the manager to the offer on behalf of Daiichi Sankyo.
Ranbaxy promoters had recently signed a share purchase agreement with Daiichi Sankyo to sell off their entire stake of 34.8 per cent in the company to the Japanese firm for Rs9,576.14 crore.
If the offer is completed successfully, the Japanese firm would hold over 58.09 per cent stake in Ranbaxy, the announcement added.
