Japan's Daiichi to pick up 51% stake of Ranbaxy for $4.6 bln

New Delhi, June 11 (UNI) Ranbaxy Laboratories Ltd today announced that Japanese drug maker Daiichi Sankyo Co Ltd will acquire majority stake of the country's largest pharmaceutical firm for 4.6 billion dollars.

Ranbaxy has entered into a binding Share Purchase and Share Subscription Agreement (SPSSA) with the Japan's second-largest drug maker, which makes it the biggest deal in the pharma sector in the country.

Under the agreement, Daiichi Sankyo will purchase 34.8 per cent controlling stake of Ranbaxy's founders, the Singh family, and make an open offer for a further 20 per cent of Ranbaxy shares, as per Indian regulations, at a price of Rs 737 per share which represents a 31.4 per cent premium to its yesterday closing share price.

''The strategic alliance with Daiichi Sankyo, a leading research-based pharmaceutical company will put us on a new and much stronger platform to harness our capabilities in drug development, manufacturing and global reach,'' Ranbaxy CEO-cum-MD Malvinder Mohan Singh told reporters here.

The total transaction value is expected to fetch between 3.4 billion dollars to 4.6 billion dollars, he said, adding that the deal values the company's market capitalisation at 8.5 billion dollars.

Commenting on the development, Daiichi Sankyo Company Ltd president and Chief Executive Officer Takashi Shoda said, ''the proposed transaction is in line with our goal to be a global pharma innovator and provides the opportunity to complement our strong presence in innovation with a new, strong presence in the fast growing business on non-proprietary pharmaceuticals.'' UNI SBA SG RN1704