Ranbaxy laboratories limited, known to be India's largest pharmaceutical company headed by its CEO Malvinder mohan singh announced on wednesday, marking the largest ever deal in Indian pharma industry. Daiichi Sankyo, a japanese drug firm had acquired a mojority of stake in Ranbaxy for Rs.15,000 crore. Daiichi sankyo would also make an open offer for an additional 20% stake in Ranbaxy at price of Rs.737/share which represents a premium of over 50% on the average price over the last months. Under the deal on wednesday the japanese firm would acquire the entire 34.82% stake in Gurgaon based Ranbaxy laboratories limited from its current promoters Malvinder mohan singh and family, whch would make Daiichi Sankyo world's 15th largest drug maker. The family will net Rs.10000 crore by selling its stake in Ranbaxy.
Ranbaxy is said to be valued over Rs. 36000 crore i.e. $8.5 billion vefore the deal. The Purchase of shares from the promoters and through the open offer is expectd to value the deal between $3.4 - 4.6 billion, the two firms said in a joint statement. According to deal Malvinder mohan singh would continue as CEO and MD of the entity, which would retain the ranbaxy brand name. Singh will also assume the position of chairman of the board upon the deal's closure that is expected to be by march 2009.
After the deal Ranbaxy said As the company moves into next level of growth it would benifit the organisation, its share holders and employers. Now it is clear opportunity ahead of us toleverage from each others strength.
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