Financial Daily from THE HINDU group of publications
Thursday, Feb 16, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 16, 2006 |
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Corporate
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Mergers & Acquisitions Ranbaxy bids to acquire German co Our Bureau
New Delhi , Feb 15 IN line with its earlier stated strategy of expanding through acquisitions, Ranbaxy Laboratories Ltd today confirmed that it has bid for a German generic pharmaceutical company called Betapharm. Dr Reddy's Ltd is the other Indian firm in the race to acquire the company. Refusing to name the target company, an official statement said: "In line with the company's European growth strategy, it submitted a bid in a competitive tender for a German generic pharmaceuticals company. The target company, if acquired, would constitute a significant proportion of the group's net assets, revenues, and earnings." It added: "Ranbaxy is one of a number of bidders. Therefore, it is currently unclear when the result of the bid will be announced or what the result will be. At this stage, it is not possible for the company to predict the outcome of the bidding process and the company may or may not be successful." Ranbaxy has already sought approval to raise up to $1.5 billion through appropriate securities to fund its expansion plans. Meanwhile, sources said that the bid by Ranbaxy is higher than that of Dr Reddy's. According to them, Dr Reddy's has made an offer of 470 million euros, while Ranbaxy's bid is expected to be over 500 million euros. Betapharm, founded in Augsburg, Bavaria in 1993, was acquired by 3i in a 300-million-euro management buyout in March 2004. With a turnover of 161 million euros in 2004, the company has around 150 active pharmaceutical ingredients covering major illness ranging from the common cold to cardiovascular diseases. The Ranbaxy scrip closed at Rs 446.65 at the BSE on Wednesday; a month back the closing price was Rs 384.85.
Related Stories: More Stories on : Mergers & Acquisitions | Pharmaceuticals | Ranbaxy Laboratories Ltd
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