CCEA nod for Daiichi-Ranbaxy deal; Rs 21,561 cr FDI to come in

New Delhi, Oct 3 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for the proposal of Japanese firm Daichi Sankyo Ltd to purchase the equity shares of Ranbaxy Laboratories Ltd.

Briefing newspersons on the outcome of the CCEA decisions, Finance Minister P Chidambaram said the Daichi Sankyo approval would result in FDI investment to the tune of Rs 21,560.61 crore.

It entails purchasing the equity shares of Ranbaxy from time to time including without limitation, to purchase upto 92,519,126 fully paid up equity shares pursuant to the open offer under Regulations and to purchase up to 12,99,34,134 fully paid up equity shares from the sellers on the stock exchange.

It also involves subscribing to the equity shares of Ranbaxy from time to time, including without limitation, up to 46,258,063 fully paid up shares and 23,834,333 warrants pursuant to the preferential issued by Ranbaxy.

Daiichi Sankyo, agreed in June, to buy the 34.8 per cent stake held by Ranbaxy's founding family, and made an open offer for a further 20 per cent of Ranbaxy shares, as per Indian regulations, that was oversubscribed.

The approaval is also for the purchase of equity shares of Zenotech Laboratories Limited from time to time, including without limitation, to purchase upto 68,85,000 fully paid up equity shares pursuant to the open offer under the regulations.

''The inflow from the acquisition of Zenotech shares has not yet been determined. That will also be quite significant,'' the finance minister said.

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