Daiichi gobbles up Ranbaxy
In a deal worth up to $4.6 billion (about Rs 15,000 crore), Ranbaxy Laboratories, the country’s largest pharma company , will become a subsidiary of Daiichi Sankyo of Japan. The promoters of Ranbaxy, Malvinder Singh and family, will sell their entire stake of almost 34.8% for Rs 10,000 crore. This is the biggest sell-out by any Indian promoter to a foreign company .CEO and MD Malvinder Singh will retain his role as CEO post-sale and also be made the chairman. The deal values Ranbaxy at about $8.5 billion (Rs 36,000 crore) and makes Daiichi the world’s 15th largest pharma company. Daichii, Japan’s second-largest drugmaker, will hold a minimum of 50.1% in Ranbaxy through the purchase of the promoter stake and an open offer to shareholders of up to 20% (under takeover rules) at Rs 737 per share, which is about 31% higher than the company’s closing price on Wednesday. Daiichi will also be allotted convertible warrants which it will have the option of converting into equity shares. But it will not do so if it ends up with an equity holding exceeding 50.1%.