The pharma deal between the second largest Japanese drugmaker, Daiichi Sankyo and domestic pharma major Ranbaxy Laboratories Ltd on Wednesday, got a nod from the government.
The finance ministry gave its approval to Daiichi Sankyo?s proposed acquisition of shares in Ranbaxy on the recommendation of Foreign Investment Promotion Board, which considered the case in late July. Daiichi?s proposal involves subscription to equity shares of the two Indian companies and issue of warrants amounting to Rs 104.63 crore, said a finance ministry statement.
Ranbaxy had announced in June that Japanese drug major would be acquiring 34.82 % promoters? stake in Ranbaxy from the Delhi-based Singh family for up to $4.6 billion, to strengthen its overseas prescription drug business. Daiichi intends to buy 20% stake from Indian shareholders under the takeover rules for which it got the market regu lator Sebi?s nod a few days back.
The open offer date will start on August 16 and close on September 4. After the deal was announced in June the US department of justice alleged in a court of Maryland, USA that Ranbaxy had misled the US government by forging data on the quality of its low-cost medicines and accused it of drug adulteration charges while Ranbaxy refuted the charges.