Daiichi to pay Rs.737 per Ranbaxy share in open offer

August 11th, 2008 - 5:36 pm ICT by IANS  

Tokyo, Aug 11 (IANS) Japanese drug major Daiichi Sankyo Company Ltd will pay Rs.737 per share to shareholders of Ranbaxy Laboratories in its open offer beginning Aug 16, the Japanese company said in a regulatory statement here Monday. On India’s equities market, the Bombay Stock Exchange, Ranbaxy’s share price was quoting at Rs.510.70 in late afternoon trade, up Rs.5.75 or 1.14 percent from its previous close Friday at Rs.504.95.

The Japanese company had agreed in June to pick up 34.8 percent stake in Ranbaxy, India’s largest drug maker, from its promoters, Malvinder Mohan Singh and family.

Following all statutory clearances, Daiichi has now announced the terms of the open offer to acquire more shares from other public shareholders of Ranbaxy so as to achieve a 50.1 percent or more of the voting capital shareholding in the Indian company, the statement said.

Such an open offer is mandatory under Indian regulations.

According to the terms announced Monday, Daiichi has offered a price of Rs.737 per share and will try to acquire a maximum of 92,519,126 shares of Ranbaxy for an aggregate value of Rs.68,186 million (or 170,466 million Japanese yen), the statement said.

The aggregate price of the offer is the amount obtained by multiplying the number of shares planned to be purchased - 92,519,126 shares - by the offer price (Rs.737 per share), it said.

This acquisition will be equivalent to 20 percent of the total shares issued on a fully diluted basis excluding warrants.

In addition to the open offer, Daiichi is expected to acquire the equity stake in Ranbaxy through three routes: purchase of shares held by the Singh family, preferential allotment of equity shares, and Daiichi Sankyo’s exercise of a portion or all of the share warrants to be issued on a preferential basis, the statement said.

Daiichi will execute the transaction as soon as all the requirements are fulfilled including the approvals by the relevant authorities, the statement said.

The statement confirmed the schedule of activities with regard to the open offer announced earlier.

The offer will be open for 20 days starting Aug 16 and closing Sep 4.

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