The Hindu Business Line : Ranbaxy acquiring 14.9% stake in Jupiter Bio

Plans ahead
Jupiter Bioscience is to place the proposal for approval before its board on April 12.
The deal is a shade below the 15 per cent level that would have triggered off a mandatory open offer by Ranbaxy.

New Delhi, April 6,

Ranbaxy Laboratories has decided to pick up 14.9 per cent stake in Hyderabad-based Jupiter Bioscience.

An in principle agreement for the deal has been reached by the two sides.

"It is an opportunity for us to expand our product portfolio. We are looking at 14.9 per cent of enlarged capital of Jupiter Bioscience, subject to the completion of due diligence," said Mr Malvinder Mohan Singh, CEO and Managing Director, Ranbaxy Laboratories.

Mr Singh said that in the company expects huge upsides from the peptide business between 2008 and 2013.

Jupiter Bioscience is to place the proposal for approval before its board on April 12. Ranbaxy is to be allotted equity share warrants on an expanded capital base, after shares have been allotted to promoters and qualified investors. Currently the promoters of Jupiter Bioscience hold 72.81 per cent of its stake.

Incidentally, the deal is a shade below the 15 per cent level that would have triggered off a mandatory open offer by Ranbaxy.

Jupiter Biosciences reported net profits for the quarter were at Rs 7.21 crore as against Rs 4.98 crore for the previous quarter. The company's shares closed at Rs 143.80 at the Bombay Stock Exchange on Thursday.

Ranbaxy Laboratories closed at Rs 345.20 on the BSE.

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