Ranbaxy, Daiichi Sankyo confirm deal | business | Hindustan Times
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Ranbaxy, Daiichi Sankyo confirm deal

business Updated: Jul 17, 2008 11:40 IST

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A day after Ranbaxy Laboratories accused the corporate rivals for the recent stock slump, the pharma major on Thursday said its deal to sell promoters' stake to the Japanese firm Daiichi Sankyo is "binding and final."

"Following intense speculation in sections of the media and the stock market, Daiichi Sankyo and Ranbaxy reiterate that the agreement between Daiichi, Ranbaxy and the Singh family, the promoters of Ranbaxy, is binding and final, subject to regulatory approvals," a joint statement issued by the companies said.

Pointing out that both the companies are committed to the transaction, the statement said, "Daiichi Sankyo, Ranbaxy and the Singh family stand by the deal and confirm that the terms of the deal remain unchanged. All the synergies expected to accrue to the combine, remain intact as before."

The said deal would create a complementary business combination that provides sustainable growth by diversification and an enhanced global reach, it added.

Earlier the board of directors and shareholders of Ranbaxy Laboratories had approved the allotment of over seven crore securities to Japanese drug maker Daiichi Sankyo.

"The share purchase and share subscription agreement have earlier been approved by the boards of directors of both the companies. Coupled with the approval now in place from the shareholders, this clears the decks for the deal to proceed as planned," the statement said.

Last month, Ranbaxy had announced that the promoters have signed a share purchase agreement with Daiichi Sankyo to sell off their entire stake of 34.8 per cent in the company to the Japanese firm for Rs 9,576.14 crore.

Shares of Ranbaxy were trading at Rs 473.50, up 0.59 per cent in the early morning trade on the Bombay Stock Exchange.