Daiichi postpones open offer for Zenotech

Japanese drug major said on Monday it has postponed its open offer to acquire a 20 per cent stake in the Hyderabad-based Zenotech Labs after SAT ordered a status quo on the issue.

"The Securities Appellate Tribunal of India has directed that the status quo be maintained in respect of the open offer. Hence, the open offer will not commence as scheduled on August 11, 2009," Daiichi Sankyo company said in a statement.

Over the past few months, the two firms had been battling in courts over the price of the open offer.

SAT's order regarding the status quo of the public offer came after Zenotech's two shareholders -- Jayaram Chigurupati and Narayan -- moved the tribunal against the Securities and Exchange Board of India's nod to Daiichi for the offer at Rs 113 a share.

Daiichi's offer at Rs 113 per share ran into trouble as Zenotech complained against it to Sebi saying the Japanese firm is not honouring its earlier commitment of Rs 160 per share. The market regulator upheld Daiichi's position.

After the order, Zenotech moved the Madurai bench of the Madras high court seeking quashing of Sebi's nod for the offer at Rs 113 a share, which the court dismissed.

Daiichi had announced an open offer to acquire 68,85,000 shares, or a 20 per cent stake, in Zenotech, an affiliate of Ranbaxy, in February this year.

(Meanwhile, Zenotech said in a filing to the Bombay Stock Exchange that the next hearing of SAT will take place on September 4, 2009.

The filing said, "The shareholders of the Target Company (Zenotech) are further requested not to tender any shares and no shares, either in demat or physical mode, will be accepted until further announcement of the revised schedule of activities."

Shares of Zenotech were trading at Rs 105, down 0.28 per cent, in afternoon trade on the BSE.

Meanwhile, Zenotech said in a filing to the Bombay Stock Exchange that the next hearing of SAT will take place on September 4, 2009.

The filing said, "The shareholders of the Target Company (Zenotech) are further requested not to tender any shares and no shares, either in demat or physical mode, will be accepted until further announcement of the revised schedule of activities."

Shares of Zenotech were trading at Rs 105, down 0.28 per cent, in afternoon trade on the BSE.