Daiichi's open offer for Ranbaxy
Close on the heels of it’s acquisition of the promoter stake in Ranbaxy, Daiichi Sankyo has announced an open offer to acquire an additional 20% stake (92 million shares) in Ranbaxy. The company offered to buy back shares at Rs.737/share, the price at which it bought out the promoter stake. The offer opens on 08-Aug-08 and closes on 27-Aug-08. The last day for submitting a competing bid is July 7.
Daiichi is buying the entire promoters stake of 34.82%, and will pickup an additional 9.5% through a preferential allotment. They will also have the option of garnering another 4.9% through issue of warrants. If this open offer is fully subscribed, Daiichi stands to own 58% of Ranbaxy.
The problem for minority shareholders wanting to subscribe to the open offer is that if their number exceeds 20%, Daiichi will buy their shares on a pro-rata basis.
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