The government on Friday gave final clearance to the acquisition of the domestic pharma company Ranbaxy Laboratories Ltd by Japanese pharma major Daiichi Sankyo that involves foreign investment inflow of more than Rs 21,500 crore.
?Daiichi Sankyo is now free to acquire Ranbaxy . The flow of FDI as a result of acquisition of shares has been estimated at Rs 21,560 crore,? finance minister P Chidambaram said after the Cabinet Committee on Economic Affairs (CCEA) gave its approval to the acquisition. The Foreign Investment Promotion Board (FIPB) had earlier approved the sale.
The second largest drugmaker of Japan in June this year had entered into a share purchase agreement with the promoters of the country?s largest drug maker Ranbaxy to acquire controlling stake in the company. Daiichi Sankyo agreed to acquire 34.8% stake held by Ranbaxy?s founding family and made an open offer for a further 20% of Ranbaxy shares.
As part of the acquisition process, Daiichi also agreed to buy the shares of another pharma company Zenotech Laboratories which had a strategic alliance with Ranbaxy and pick up shares through open offer and direct purchase from the stock market.
The deal needed to get the approval of the CCEA as it involved investments over Rs 600 crore. Daiichi is also buying 6.89 million shares of Zenotech.
The CCEA approval includes purchase of 9.25 million shares from the open offer and around 13 million shares from the promoters of Ranbaxy by Daiichi Sankyo.
The company has also been allowed to subscribe 4.6 million shares and 2.3 million warrants, in addition to picking up 6.8 million shares of Zenotech.
