Ranbaxy promoters to sell stake to Japan’s Daiichi

June 11th, 2008 - 1:02 pm ICT by IANS  

New Delhi, June 11 (IANS) The shares of Ranbaxy Laboratories, India’s largest pharmaceuticals firm, were up 4.8 percent Wednesday after talks to offload the promoters’ stake to Japan’s Daiichi Sankyo entered the final stage. The present promoters of the company, led by Malvinder Mohan Singh and Shivinder Mohan Singh want to offload their stake of 34.82 percent in a deal estimated at $2.7 billion.

“This will be a path breaking deal. It will redefine India’s pharmaceuticals landscape,” Malvinder Singh said, even as his team was negotiating the final contours of what could become the largest deal in India’s pharmaceuticals industry.

The shares of the company were trading 4.90 percent up at the Bombay Stock Exchange (BSE) at Rs.588, close to the 52-week high of Rs.591.

The Japanese drug maker had announced last month that its subsidiary in India - Daiichi Sankyo India Pharma, based out of Mumbai - will expand operations in the country into a full-scale business.

This deal will help the Japanese company enter the generics drug business not just in India but also globally where Ranbaxy has a presence.

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