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Mumbai, June 16 Daiichi Sankyo’s open offer for up to 20 per cent stake in Ranbaxy Laboratories will open on August 8, the company said in a public announcement on Monday.

The Japanese drug maker, Daiichi Sankyo recently announced the acquisition of an Indian pharmaceutical company, agreeing to buy out the promoters in a deal totally valued at $3.4-4.6 billion.

The Japanese company has agreed to acquire 34.81 per cent of the stake of the company from the promoters Mr Malvinder Singh and family. The open offer for up to 20 per cent at Rs 737 a share would increase Daiichi Sankyo’s stake in the company to a maximum of 58.09 per cent.

The purchase price of Rs 737 by Daiichi Sankyo represents a premium of 53.5 per cent to Ranbaxy’s average daily closing price on NSE for the three months ending June 10, 2008. The letter of open offer will be sent to those who are the company’s shareholders as on as on June 27, Daiichi Sankyo said in the public announcement.

The closing date of the offer is August 27, 2008. The last date for a competitive bid (if anybody wants to make a counter bid to that of Daiichi Sankyo) for Ranbaxy is July 7, the public announcement said.

Mr Singh will continue to lead the company as its Chief Executive Officer and Managing Director, while additionally assuming the position of Chairman of board upon closure, the company had said in a Bombay Stock Exchange release last week.

Mr Singh had also maintained earlier that the company would continue to be a listed entity in India.

The company’s share price at BSE closed at Rs 567.75 on Monday, up by 0.15 per cent from its previous close.

More Stories on : Pharmaceuticals | Open Offers | Ranbaxy Laboratories Ltd

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