Daiichi Sankyo acquires controlling stake in Ranbaxy
At a time when Indian companies are making waves by buying companies abroad, it came as a complete surprise to know that leading Indian pharma company Ranbaxy has been acquired by Daiichi Sankyo Company Ltd. of Japan. This is one of the largest deals in the Indian pharma industry.
The Singh family have agreed to sell their promoter holding of 34.82 % in an all-cash deal valued at $4.6 billion at Rs.737 per share. With a combination of preferential equity allotment and an open offer for up to 20 %, Daiichi is set to acquire an overall stake of 51 % in the company. The acquisition is likely to be completed towards the end of FY09, making the combined entity the world’s 15th largest pharma company.
Promoter and CEO Malvinder Singh retains his post and will also chair the board. Here’s what Daiichi Sankyo President and CEO Takashi Shoda had to say on Daiichi’s acquisition of Ranbaxy.
Update: Pfizer seeks to queer the pitch for Daiichi Sankyo.
Pingback: Daiichi’s open offer for Ranbaxy