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THE DEAL
Japan
Daiichi
India
Promoters
Transfer of 38.4% Shares
Ranbaxy
Public Shareholder
Transfer Open Offer 20%
Deal price Rs. 737 per share Total amount invested by Daiichi Rs.2,15,000 million
CEO & M. D.
Particulars
Acquisition of Shares under Open Offer
Number of Shares
92,519,126
46,258,063
129,934,134
Sector
Reuters Bloomberg Equity Capital (Rs mn) Face Value (Rs) 52 Week H/L (Rs) Market Cap (Rs bn/ USD mn) Daily Avg Vol. (No of shares) Daily Avg Turnover (US$)
Pharmaceuticals
RANB.BO RBXY@IN 67 5 614/300 164/3,840
52456297
63.3
Date
June 11, 2008
Event
Signing of Agreement by Daiichi with Ranbaxy and its Promoters
Public announcement by Daiichi to the shareholders of Ranbaxy to acquire additional 20% equity shares at Rs.737 per share under the Takeover Code. Ranbaxy announces its settlement with Pfizer over Lipitor litigation worldwide.
Approval of preferential allotment of equity shares and warrants to Daiichi by the shareholders of Ranbaxy. Daiichi receives SEBIs observation on the draft letter of offer FIPB approves the proposed investment, subject to approval of CCEA
August 4, 2008
August 6, 2008
Daiichi issues revised schedule of August 11, 2008 activities due to delayed receipt of SEBI observation
Acquisition of 20% equity stake by October 15, 2008 Daiichi pursuant to open offer SEBI rejects Promoters application to sell their equity stake through a October 16, 2008 block deal on the stock market
Ranbaxy becomes subsidiary of Daiichi upon increase in Daiichis stake to 52.5% (including preferential allotment and transfer of 1st tranche shares from Promoters) Daiichi acquires balance 11.42% shares from the Promoters off the stock market and the deal is concluded. Daiichis equity stake in Ranbaxy up to 63.92%
November 7, 2008
Japan has an ageing population and they needed new market Japanese health Ministry is encouraging doctors to use generic drugs to reduce the health budget Acquisition of Ranbaxy gives Daiichi a low cost manufacturing base in India
Daiichi will have a strong generics operations in India and operations in 60 different countries
Daiichi moves from 22nd rank to 15th among world largest pharmaceutical companies
Before Merger Ranbaxy 8th largest Generic Drug Maker in the World Daiichi Sankyo 25th Largest Pharmaceutical Company in the World
After Merger Ranbaxy Daiichi 15th Largest Pharmaceutical Company Ranbaxy to be among the top five Generic Drug makers in the world
Daiichi: an Innovator
becoming a international
Ranbaxy will gain easier access to the much-coveted Japanese market by operating from within the Daiichi Sankyo The immediate benefit for Ranbaxy is that the deal frees up its debt and imparts more flexibility into its growth plans.
Easier to enter the Indian market. Bigger goal - in securing a strong presence in the global market for generics. The acquisition will help Daiichi Sankyo to jump from number 22 in the global pharmaceutical sector to number 15. The main benefit is Ranbaxys low-cost manufacturing infrastructure and supply chain strengths.
Loss of good influencing people from pharma sector Maximum use of available natural resources and not rational use. Use the Indian talent in good manner at cheap rate. Capture of rich Indian generic store.
Daichii have to face competitors of Ranbaxy Price Daiichi paid for acquisition was quite high compared to the present pricing of other Indian generic drug making companies. Lots of government restrictions on Ranbaxy drug
Ranbaxy fell 3% on stock market because of low acceptance and capital gains