Zenotech seeks Sebi mediation, Daiichi adamant

Written by feBureau | New Delhi | Updated: Jan 31 2009, 06:09am hrs
While Hyderabad-based drugmaker, Zenotech Lab Ltd have alleged breach of trust against Japanese drugmaker Daiichi Sankyo, claiming it had committed a price of Rs 160 per share for an open offer, the latter refused such claims.

Zenotech Labs in a letter to Sebi has asked not to let Daiichi Sankyo and its subsidiary Ranbaxy Labs proceed with their open offer at Rs 113.62 per share to acquire the company, claiming the price offered was too less and amounted to oppression and exploitation of minority shareholders.

The board may be pleased not to process and finalise the offer document to be submitted by Daiichi (Sankyo) until a favourable ruling is given protecting the interests of minority shareholders, Zenotech Laboratories chairman Jayaram Chigurupati wrote to Sebi chairman C B Bhave.

In view of the mandatory provisions of the Sebi Regulations Daiichi ought to have made the public announcement for the open offer to buy the shares only at Rs 160 per shares as otherwise, it amounts to oppression and exploitation of the minority share holders, Chigurupati said.

Chigurupati claims when Daiichi Sankyo acquired Ranbaxy, the Japanese company also took control of over 15 % stake in Zenotech.