Minority shareholders of Hyderabad-based Zenotech Laboratories, a biotech company in which Ranbaxy owns 46.8 per cent, are up in arms against Ranbaxy's new owner Daiichi Sankyo for allegedly failing to buy additional shares at the price offered by the former promoters of Ranbaxy.
Sun Pharma has evinced its interest in buying Hyderabad-based biotech company Zenotech Laboratories, through an open offer to buy 28.1 per cent worth Rs 18.41 crore ($3 million).
The shareholders want Daiichi to offer the same price (Rs 160) that was offered by Ranbaxy while acquiring a 45 per cent stake in Zenotech a year ago. Daiichi has to make an open offer as it has indirectly become the major shareholder of Zenotech by virtue of the Ranbaxy acquisition.
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.
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.
In October 2007, Ranbaxy Laboratories picked up a 38 per cent additional stake in the company, taking its shareholding in the Hyderabad-based firm to 45 per cent. However, Ranbaxy had made it clear that it is not interested in taking over the company.
A bench comprising Justice Aftab Alam and Justice R M Lodha set the open offer price for Zenotech Labs at Rs 113.62 per share, as against Rs 160 per share fixed by the SAT for Daiichi-Sankyo to acquire an additional 20 per cent stake in the company.
Over the past few months, the two firms had been battling in courts over the price of the open offer. SAT's order regarding the status quo of the public offer came after Zenotech's two shareholders -- Jayaram Chigurupati and Narayan -- moved the tribunal against the Securities and Exchange Board of India's nod to Daiichi for the offer at Rs 113 a share.
Ranbaxy, originally promoted by the Singh family, was acquired by Japan's Daiichi Sankyo late last year.
Sanjeev Dani, senior vice-president and regional director, Asia and CIS, Ranbaxy, said, "We are pleased to partner with Sirtex. We shall work towards creating a productive relationship."
Competing with established biotech companies in India such as Wockhardt, Biocon and Reliance Life Sciences, small biotech companies such as Zenotech, BV Biocorp and Intas Biopharma are likely to emerge as major players in biogeneric drugs.
Ajit Mishra, Vice President, Research, Religare Broking, answers readers's queries on stocks they own or want to buy.
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