Daiichi Sankyo completes Ranbaxy buy

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New Delhi, Nov. 7 Ranbaxy Laboratories Ltd and Daiichi Sankyo Company Ltd announced the completion of their deal with the latter buying out the remaining equity shares of the Singh family in the Indian company.

The Japanese pharma major has now acquired 63.92 per cent of the equity share capital of Ranbaxy comprising 268,711,323 shares.

The stake sale was structured in phases. Daiichi Sankyo had already acquired over 50 per cent stake, including 20 per cent through an open offer.

Mr Takashi Shoda, President & CEO of Daiichi Sankyo, said, “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 realise sustainable growth.”

Mr Malvinder Mohan Singh, CEO and Managing Director, Ranbaxy, 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 strengths of both companies to bring unprecedented value to all stakeholders.”

Ranbaxy earlier had received an amount of Rs 3,585 crore ($736 million) from Daiichi Sankyo for the preferential issue of equity shares and warrants.

This will be used to further drive the company’s growth through organic and inorganic means while also retiring some debt at an appropriate time.

“Continuing to operate as an independent and autonomous company, Ranbaxy will work closely with Daiichi Sankyo to explore and optimise the growth opportunities across the pharmaceutical value chain,” said a press release.

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(This article was published in the Business Line print edition dated November 8, 2008)
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