
What is this deal all about?
Ranbaxy Laboratories Ltd, India largest pharmaceutical company by sales, would now be majority owned by Japan’s Daiichi Sankyo Company.
In an all cash deal, the largest in India's pharmaceuticals space, Ranbaxy promoters led by CEO Malvinder Mohan Singh have agreed to sell their stake, 34.8 per cent, to Daiichi Sankyo for Rs 9,576 crore ($2.4 billion) or Rs 737 per share, the company said on Wednesday.
Along with open offer for 20 per cent stake, which Daiichi Sankyo will make soon, the Japanese company will shell out between $3.4 billion and $4.6 billion for the controlling stake, depending on the response to the open offer.
“On the consummation of the transaction, Daiichi Pharmaceutical will have 50.1 per cent stake in the company,” Singh said.
“This was emotional decision for the family. However, going forward it would immensely benefit all the stake holders including investors, employees and consumers.”
The deal values Ranbaxy at $8.5 billion (Rs 35,000 crore), or Rs 737 per share, and would catapult the combined entity to the rank of 15 among the world's biggest drug makers. Currently, Daiichi is ranked 22.
Ranbaxy shares had gained 10 per cent through the past three trading sessions in anticipation of the deal, but on Wednesday the stock closed nearly flat at RS 506.80.
Even after selling his entire stake, Malvinder Mohan Singh will continue as chief executive and also become chairman of the board of the Indian group. In addition to the share transfer from promoters, Ranbaxy would issue fresh equity shares and warrants to Daiichi.
Singh said described the decision as “a significant milestone in our mission of becoming a research-based international pharmaceutical company."
More than 90 per cent of Ranbaxy's sales currently come from generic products. The move will “complement our strong presence in innovation with a new, strong presence in the fast growing business of non-proprietary pharmaceuticals,” said Takashi Shoda, chief executive of Daiichi Sankyo.
The transaction is expected to be completed by March 2009.

WhatsApp defers new policy on info sharing

Bitcoin swings undermine CFO case for converting cash to cryptocurrency

HDFC Bank penalises its executive for inadvertently selling shares

Adani Group rebuts allegations, says no loan to it turned NPA

Billionaire Jhunjhunwala-backed game startup Nazara starts India's tech IPO rush
- Founded by gamer Nitish Mittersain in 2000, when he was a college undergrad, Nazara is among the firms that have benefited from a global boom in smartphone gaming that began even before the pandemic drove millions online.

RBI policies helped ease severity of economic impact of Covid-19: RBI Guv

Open to examine proposal on bad banks: RBI governor Shaktikanta Das

Need to support economic revival, financial stability: RBI Governor

Emerging markets need reserves as shock buffers, says RBI governor Das

Virus fears return to haunt markets

HCL Tech Dec qtr profit jumps 27% to Rs.3,982 crore

India’s trade deficit at 25-month high in Dec

How to check income tax refund status online. Read here
- Income tax refund (ITR) status can be checked on the National Securities Depository Limited (NSDL) website as well as on the income tax department’s e-filing site.

Signal sees global outage, company says 'working hard to restore service'
