Daiichi Sankyo completes Ranbaxy acquisition

Daiichi Sankyo Co, Japan's third-biggest drugmaker, has completed its acquisition of a majority 63.9 per cent stake in Ranbaxy Laboratories Ltd, India's largest pharmaceutical company.(See: Daiichi acquires 52.5 per cent in Ranbaxy)

Ranbaxy Laboratories and Daiichi Sankyo today announced the successful closure of their transformational deal with the execution of the final transfer of the remaining equity shares of the Singh family in Ranbaxy.

Pursuant to this, Daiichi Sankyo has now 63.92 per cent of the equity share capital of Ranbaxy, comprising 268.7 million shares, the companies said in a statement to the Tokyo Stock Exchange.
 
Of the 286.7 million shares, 92.52 million shares ware acquired under open offer and 46.26 million under preferential allotment while 129.9 million shares were acquired from the promoter Singh family.

''We are pleased to announce that all the planned transactions of this landmark deal have been successfully completed. We are determined to work with Ranbaxy to realize sustainable growth,'' Takashi Shoda, president and CEO of Daiichi Sankyo, said.

''We are pleased that the deal has been closed successfully. This puts us well on the path to create a hybrid business model that will unlock the strength of both companies to bring unprecedented value to all stakeholders,'' Malvinder Mohan Singh, CEO and MD, Ranbaxy, said.

Ranbaxy earlier had received an amount of Rs3,585 crore ($736 million) from Daiichi Sankyo for the preferential issue of equity shares and warrants. The company proposes to use the amount to further drive the company's growth through organic and inorganic means and for retiring some debt.

Ranbaxy will work closely with Daiichi Sankyo to explore and optimise the growth opportunities across the pharmaceuticals value chain, the release said.
 
Ranbaxy Laboratories, meanwhile, submitted to BSE a copy of 'Notice of Change of Control' issued by the company to the trustees of foreign currency convertible bondholders.

Ranbaxy said the Reserve Bank of India, in a letter dated 3 November 2008, has rejected the application of the company for early redemption of the bonds. The company said it had informed the trustees of the bondholders informing about the response of the RBI.