‘Daiichi must pay Rs.160 for Zenotech share’January 19th, 2009 - 10:38 pm ICT by IANS
Chennai, Jan 19 (IANS) Japanese drug-maker Daiichi Sankyo should pay Rs.160 per share for acquiring a 20 percent stake in the Hyderabad-based Zenotech Labs as agreed upon, the Indian company said Monday. The statement came after Japanese company Monday made an open offer of Rs.113.62 for one Zenotech share.
In a telephonic interview, Zenotech’s managing director Jayaram Chigurupati told IANS that Daiichi had last July agreed to pay Rs.160 for a Zenotech share.
Chigurupati said the agreement was confirmed in meetings in August and November last year. “In fact, this was the agreement until the midnight of January 15. For reasons best known to Daiichi, the offer was withdrawn at the very last minute.”
“There has been no material change in Zenotech between last year and now for the downward price revision. In fact, the company is in a better position,” Chigurupati said.
The open offer has to be made as Ranbaxy Labs held around 47 percent stake in the Rs.104-million Zenotech at the time of its takeover by Daiichi.
Blaming the Japanese company for not honouring its earlier promise of Rs.160 per share, Chigurupati said: “Two cases filed in the Andhra Pradesh High Court by the company shareholders seeking a stay of Daiichi’s acquisition of Ranbaxy were withdrawn because of this promise.”
He said the two cases were withdrawn based on the “understanding” that Daiichi would pay Rs.160 per share, and contended the Japanese company should have made the open offer to Zenotech shareholders last June or August.
“There was no written agreement to this effect between Daiichi and Ranbaxy and the shareholders who filed the case,” Chigurupati said. “But I have the email correspondence with Ranbaxy and Daiichi officials to prove what they had promised.”
According to him, Daiichi had all along maintained that Zenotech should negotiate with Ranbaxy chief executive Malvinder Singh and chief operating officer Atul Sobti.
“In August last year, Ranbaxy had prepared a note to Daiichi on the subject. Despite several requests it was not given to me by Ranbaxy officials,” he added.
Chigurupati said he met Daiichi and Ranbaxy officials. “They agreed to send the draft document but that did not come. However they had sent a questionnaire and a 10-member team to do the due diligence in December last year,” he added.