The transaction, to be followed up by an open offer, puts the entire deal value between 3.4 billion dollars and 4.6 billion dollars.
Ranbaxy said a binding share purchase and share subscription agreement was entered into between Daiichi Sankyo, Ranbaxy and the Singh family.
Under the deal, Daiichi would acquire 34.82 per cent (as per latest shareholding information on the BSE) stake of the promoters and make an open offer as per regulatory requirements at a price of Rs 737 per share.
The purchase price represents a premium of 53.5 per cent to Ranbaxy's average daily closing price on the NSE for the three months ending June 10, 2008. Besides, the offer price is 31.4 per cent higher than yesterday's closing price, it added.
On the post closing basis, which is expected by March 2009, the transaction would value Ranbaxy at 8.5 billion dollars, it added.
Malvinder Singh will continue to lead the company as its CEO and Managing Director, while additionally assuming the position of Chairman of the Board, upon closure, Ranbaxy said.
Commenting on the deal, Singh said it puts Ranbaxy on a new and much stronger platform to harness its capabilities in drug development, manufacturing and global reach.
"Together with our pool of scientific, technical and managerial resources and talent, we would enter a new orbit to chart a higher trajectory of sustainable growth in the medium and long term in the developed and emerging markets organically and inorganically," he said.