Daiichi's open offer in Ranbaxy awaits Sebi nod

Japanese drug maker Daichii Sankyo, which has signed a share purchase agreement with Ranbaxy, on Thursday said its open offer for an additional 20 per cent stake in the domestic pharma major would undergo a change of schedule, pursuant to a delay in Sebi's approval.

In a public announcement, Daiichi Sankyo said it is yet to receive market regulator Sebi's approval for an open offer to pick up a further 20 per cent stake in the domestic pharma major, which was sent to Sebi on June 27.

"Hence the schedule of activities as per the disclosure made in the public announcement will undergo change," Daiichi Sankyo said. The offer was scheduled to open on August 8 and close on August 27.

"The revised schedule of activities in respect of the offer pertaining to acquisition of the equity shares of Ranbaxy Laboratories Ltd will be announced separately after receiving Sebi's observations," it said.

Earlier on June 16, the Japanese firm, which is acquiring promoters' 34.8 per cent stake in Ranbaxy, had made an open offer of Rs 6,818.65 crore (Rs 68.18 billion) for a 20 per cent stake in the domestic pharma major.

Daiichi Sankyo had offered to acquire up to 9.21 crore shares, representing 20 per cent stake in Ranbaxy at a price of Rs 737 each, which represents a premium of over 50 per cent on the average price during the last three months.

On completion of the acquisition, the board of directors would be re-constituted to comprise 10 members, of which a combination four independent and non-independent directors would be nominated by Ranbaxy, while the rest six would be named by Daiichi Sankyo.

ICICI Securities is the manager to the offer. On successful completion, Daiichi would hold over 58.09 per cent stake in Ranbaxy.