Global Processing

Daiichi says open offer for Ranbaxy opens soon

June 16, 2008
According to Reuters, Japanese drug maker Daiichi Sankyo said recently its open offer to buy up to 20 percent in India''s Ranbaxy Laboratories would open soon.

Daiichi struck a deal last week worth up to $4.6 billion to take control of Ranbaxy, India''s leading drug maker by sales.

The Japanese No. 3 drug maker agreed to acquire 34.8 percent from Ranbaxy''s founding Singh family and then to make an open offer for up to 20 percent at 737 rupees a share. If the offer is fully accepted, Daiichi''s stake will rise to 58.09 percent.

Daiichi said in a public notice it would send offer letters to shareholders whose name appear in the book on June 27.

The open offer to buy up to 92.5 million shares will close on Aug. 27, it said.

The last date for a competitive bid for Ranbaxy is July 7, Daiichi said in the notice. As per Indian takeover regulations, a counter bid has to be made within 21 days of the original public announcement.