Zenotech Laboratories said on Wednesday the Madras high court has ordered Japanese drug firm Daiichi Sankyo not to go ahead with the planned open offer for an additional 20 per cent stake in the pharma firm.
"By its order, the Hon'ble Madras high court (Madurai Bench) has granted an interim injunction in connection with the offer (for an additional 20 per cent)," following complaints received from its minority stakeholders, Zenotech said in a filing to the Bombay Stock Exchange.
Earlier in February, Daiichi Sankyo had announced it would launch an open offer for Zenotech to acquire 68,85,000 shares or a 20 per cent stake.
Daiichi had said it would pay up to Rs 78.23 crore (Rs 782.3 million), at Rs 113.62 a share, to Zenotech shareholders for the stake in the open offer, which was scheduled to begin on July 15 and close on August 3.
However, the offer ran into controversy as the pharma firm complained to the Securities and Exchange Board of India against Daiichi for allegedly not honouring a commitment to make the offer at Rs 160 per share.
"In view of the receipt of the order before July 15, 2009, the shareholders of the Target Company (Zenotech) are requested to note that the offer will not open as on July 15, 2009," the filing said.
A Daiichi Sankyo spokesperson said that the company is currently evaluating the order and has postponed the launch of the open offer.
Asked whether the company has any plans to revise the open offer price, the spokesperson said, "The price of open offer was determined as per the Sebi guidelines and it has no plans to change it."
