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Rediff.com  » Business » Supreme Court allows Daiichi Sankyo open offer for Zenotech

Supreme Court allows Daiichi Sankyo open offer for Zenotech

July 24, 2009 13:25 IST

The Supreme Court on Friday allowed Japanese pharma firm Daiichi Sankyo to go ahead with the public offer for an additional 20 per cent stake in Zenotech Laboratories.

A Bench headed by Chief Justice K G Balakrishnan stayed the Madras high court interim court that granted an interim injunction in connection with the offer.

Earlier in February, Daiichi Sankyo had announced it would launch an open offer for Zenotech to acquire 68.85 lakh 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.

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