The transaction, to be followed up by an open offer, puts the entire deal value between $3.4 billion and $4.6 billion.
FDA had also issued warning letters to Ranbaxy's Paonta Sahib and Dewas facilities as it found extensive problems and deviations from manufacturing norms.
The price has been cut 39 per cent to Rs 555.85 from Rs 908 per share originally after its request to redeem the bonds ahead of maturity was rejected by the Reserve Bank of India.
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 US arm of Ranbaxy pleaded guilty to seven felonies relating to the manufacture and distribution of certain adulterated drugs
Both companies can now complete the deal.
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 company buys distressed assets across the globe and turns them around to not only add to its books but also its product pipeline and regions.
NCLT allows Shivinder to withdraw petition against his brother Malvinder. Final decision to be taken by family members in their presence.
Currency values were the bigger villain over the 7 years
But splitting management bandwidth by investing in non-core businesses will not be appreciated by the market in the long run.
The relationship between the Singh brothers, erstwhile promoters of Fortis Healthcare, went sour after allegations of fund diversion from the healthcare chain emerged.
Facing arbitration claims by Daiichi Sankyo, Ranbaxy's former Indian promoters - Malvinder Mohan Singh, his brother Shivinder Mohan Singh and family - are counting on certain clauses in the share purchase agreement (SPA) signed with the Japanese company on June 11, 2008, to claim immunity from damages.
The court also restrained RHC Holdings from operating its bank accounts except for payment of salaries and statutory dues till March 23, the next date of hearing.
The company said this was 'important' to reinforce the 'complete disassociation' from its erstwhile promoters -- Malvinder and Shivinder Singh.
Based on a petition filed by two individual investors, the court on April 25, issued interim 'status quo' orders on the merger process.
The move comes in the wake of many facilities of Ranbaxy in India being barred by the US Food and Drugs Administration for supplying medicines to the US.
Two individuals filed the petition in the high court of Andhra Pradesh
All of Ranbaxy's India-based factories are currently banned by the FDA from exporting medicines to the United States, the company's largest market, after the regulator's inspection found violation of its so-called good manufacturing practices.
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.
FDI in drugs and pharmaceuticals was $487 million during April-August 2012, according to the latest data of the Department of Industrial Policy and Promotion.
Fortis Healthcare Executive Vice-Chairman Shivinder Mohan Singh is stepping down from his position to join a philosophical and spiritual organisation.
The Singapore subsidiary of the UK-based GlaxoSmithKline plans to buy 24.33 per cent stake or 2.06 crore equity shares in GlaxoSmithKline Pharmaceuticals Ltd through an open offer.
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The report comes at a time when the government is trying to clear pending FDI proposals, which include various planned investments in this sector.
Brian Tempest is among the four directors of cash-strapped healthcare chain whose removals were sought by two institutional investors. Three directors -- Harpal Singh, Sabina Vaisoha and Tejinder Singh Shergill -- had already resigned before the EGM.
Ranbaxy, which is 63.5 per cent-owned by Japan's Daiichi Sankyo Co and gets more than 40 per cent of its sales from the United States, did not immediately respond to a request on Wednesday for comment on the FDA observations.
The merger has fortified Sun Pharma's position.
Torrent to buy Ranbaxy's anti-bacterial generic
Competition watchdog says 'high market concentration' in some segments a worry.
The deal had separately come under scanner of the market regulator Sebi for alleged insider trading violations and the present 'no-objection' from the exchanges.
The annual summit between India and Japan on Saturday will seek to forge greater bilateral trade and investment ties, with Japanese Prime Minister Shinzo Abe coming with a high-powered business delegation.
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The company has been reported to be retrenching staff.
4 Ranbaxy facilities in India have been barred from exporting to US.
On January 31, the US Federal Trade Commission cleared the merger.
A source said the competition watchdog would by next month suggest 'structural remedies' that included selling key drug segments as conditions for clearing the country's largest pharmaceutical industry merger.
Ranbaxy did its maiden public issue in 1973.
'Nothing in this world is permanent. So also in business.' 'And more so in family businesses where family issues often influence business decisions,' point out S Subramanian and Nupur Pavan Bang.
The recall is the latest in a series of problems to hit Ranbaxy, which has had all its India factories stopped from sending drugs and ingredients to the United States.
The joint entity will have a market share of nine per cent in India. Analysts tracking the company said one of the key outcomes of the merger would be to create a single brand entity of Sun and the Ranbaxy brand would eventually dissolve.
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