US giant expected to bid for 65% non-promoter stake.
The transaction, to be followed up by an open offer, puts the entire deal value between $3.4 billion and $4.6 billion.
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.
The Singh family sold their 22 per cent holding to the Japanese firm, besides issuing 4.62 crore shares on preferential basis. Daichii Sankyo has already acquired 20 per cent stake in the Gurgaon-based firm, and with today's acquisitions, Ranbaxy has become a subsidiary of the Japanese firm, which would now control 52.5 per cent in the domestic pharma major.
Based on a petition filed by two individual investors, the court on April 25, issued interim 'status quo' orders on the merger process.
Japanese drug maker Daichii Sankyo, which has signed a share purchase agreement with Ranbaxy, on Thursday said its open offer for an additional 20 per cent stake in the domestic pharma major would undergo a change of schedule, pursuant to a delay in Sebi's approval.
Japanese drug-maker Daiichi-Sankyo, which entered into a binding deal with the Ranbaxy Laboratories promoters to buy the latter's 34.8 per cent stake at Rs 737 a share, on Monday said it may revise the open offer price in the case of a competitive bid. The statement assumes significance in the wake of reports that US drug major Pfizer may launch a counter offer for the non-promoter stake of Ranbaxy.
The company was indicted for violations at one of its US facilities in 2009, even after Daiichi Sankyo took over as majority shareholder in 2008.
While the two high-profile exits in pharmaceutical and telecom have raised concerns over regulatory hassles in the country, Japanese investors are still keen to tap into India's consumer growth story and many more merger and acquisition deals are in the offing in this space.
Royal tragedies, loony vampires, nuclear disasters, scoop hunters becoming the story, all that and more on OTT this week.
On Wednesday, Daiichi Sankyo's lawyers argued for a stay on stake sale by Fortis, which was opposed by counsels of the hospital chain and promoter entities.
In 2013, Daiichi had launched the arbitration proceedings in Singapore.
The Japanese company alleges the earlier Ranbaxy promoters withheld crucial information when they sold the company in 2008.
Ranbaxy settled the day at Rs 409.25, down 14.01 per cent, or Rs 66.65, from its last close. It touched an an intra-day low of Rs 402.50, lower by over 15 per cent from its previous close after opening at Rs 478, its intra-day high.
Bibhu Prasad Routray explains why the US is supporting Japan's resolve to release 'treated' radioactive waste water into the Pacific Ocean. And what role China plays in the US decision.
From Ranbaxy to Religare, Aashish Aryan takes you through a maze of legal cases involving Malvinder Mohan Singh and his younger brother Shivinder Mohan Singh. Both are in police custody following a complaint of fund siphoning.
Sun Pharma's offer was tempting because Ranbaxy was too busy fighting fires in the US to concentrate on operations.
NCLT allows Shivinder to withdraw petition against his brother Malvinder. Final decision to be taken by family members in their presence.
For Sun Pharma, it is an astute purchase that it hopes will not only boost its position in India but also globally.
The investment has lost almost 40 percent of its value in six years.
Under terms of the agreed deal, Ranbaxy shareholders will get 0.8 of a Sun Pharmaceutical share for each Ranbaxy share they own.
Ranbaxy Laboratories on Thursday launched a generic version of Prasugrel, used in treating heart diseases, from Daiichi Sankyo portfolio in India as part of strategy to launch drugs from the parent company's stable.
The US arm of Ranbaxy pleaded guilty to seven felonies relating to the manufacture and distribution of certain adulterated drugs
The 2008 deal agreement contains provisions of arbitration to be held in that country.
Japan's Daiichi Sankyo makes Ranbaxy Laboratories an offer it can't refuse -- $4.6 billion for a 50.1% stake in India's largest drugmaker.
A bench comprising Chief Justice Ranjan Gogoi and Justice Deepak Gupta held the former Ranbaxy promoters guilty of contempt of court and said that they had violated its earlier order by which the sale of their controlling stakes in Fortis Group to Malayasian firm IHH Healthcare was put on hold.
A fresh fire broke out at the Fukushima Daiichi nuclear plant in northern Japan in the wee hours of Wednesday, the BBC reported.
According to Munjal, there is an opportunity for somebody who comes from a not for profit background in health care to do something.
Japanese Prime Minister Naoto Kan has admitted that there will be a long-term battle to stabilise Japan's crippled Fukushima Daiichi nuclear plant. The Japanese government has also indicated that it may take a long time before residents of towns and villages close to the Fukushima Daiichi nuclear reactor are able to return to their homes.
The Ranbaxy experience has made multinational corporations more cautious about Indian acquisitions in general
Ranbaxy, originally promoted by the Singh family, was acquired by Japan's Daiichi Sankyo late last year.
'The lessons learnt from the triple disaster have put Japan's energy future On the right path,' notes Dr Rajaram Panda.
While Daiichi Sankyo acquired a majority share in the country's biggest drug-maker Ranbaxy, Eisai and Astellas have chosen to set up wholly-owned subsidiaries to promote their patented medicines in the country. In a communication to the Nikkei Stock Exchange on November 18, Astellas said its subsidiary Astellas Pharma India in Mumbai was set up as a marketing arm to sell its immunology and urology medicines.
The Daiichi Sankyo-Ranbaxy deal is facing a new hurdle, following an objection from the stock exchanges over completing the stake sale transaction through the block deal window, forcing the Ranbaxy promoter Malvinder Singh and his family to pay about Rs 1,000 crore from the sale as tax to complete the transaction.
Investors in Ranbaxy Laboratories got richer by over Rs 1,900 crore (Rs 19 billion) in a single day as the scrip surged by a little over 20 per cent on the Bombay Stock Exchange on Monday, a day after the pharma major announced a change of guard at its top management level.
"It will be the team I choose to have with the approval of the board. It is really our call on how to run the business. Certainly, the growth will be higher and so will be the size and scale of the investments. You will see a lot more aggression in terms of leveraging opportunities for the next few years," says Ranbaxy CEO Malvinder Mohan Singh.
Singh said they will focus on Fortis Healthcare and Religare Financial Services after the acquisition.
ICICI Securities, Daiichi Sankyo's offer manager, has indicated that there will be a delay in payment for Ranbaxy's accepted shares as the acquisition of the country's largest drug maker is yet to clear all regulatory and procedural hurdles. Daiichi has agreed to accept Ranbaxy shares from the open market as well as its promoters for Rs 737 a share. The company's scrip closed at Rs 347.2 at the Bombay Stock Exchange on September 22.
As India's largest drugmaker unveiled a deal worth up to $4.6bn to sell control to Daiichi Sankyo of Japan, the disbelief at the press conference was palpable.
The US Congressional Committee's move to probe approvals by the USFDA of the company's drug is a part of the larger game by an MNC -- 'trying to scuttle its deal with Daiichi Sankyo', Ranbaxy CEO Malvider Mohan Singh said in New Delhi. Recently, the department of justice has filed a motion in the US court against Ranbaxy alleging systematic fraudulent conduct and supplying fabricated information to the USFDA.
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