Zenotech Labs has made a representation to the Company Law Board (CLB) to buy back the 67% stake held by Ranbaxy and Daiichi Sankyo at the cost of up to R130 per share.
This stems from the ongoing indefinite strike by Zenotech employees due to non-payment of salaries. The employees are seeking clarity on the growth path of the company and have accused Ranbaxy of not honouring the agreements signed between the two companies way back in 2008.
To recall, Japan’s largest drug maker Daiichi Sankyo took over Ranbaxy and acquired Zenotech indirectly, as Ranbaxy was the majority shareholder in Zenotech in 2008. Ranbaxy and Zenotech Laboratories are the two Indian subsidiaries of Daiichi Sankyo. Ranbaxy holds about 46.84% and Daiichi Sankyo holds 20% in Zenotech. Ranbaxy and Daiichi Sankyo together hold 66.84% stake in the company. Chigurupati is the largest minority shareholder with 26%.
Sources in Zenotech Labs said the company has already made a representation to the Company Law Board on the buy back of its shares from Ranbaxy at the rate of up to R130 per share. A hearing by CLB is expected on Tuesday for the representation.
Speaking to FE, Jayaram Chigurupati, founder and MD, said Ranbaxy has failed to pay even the operational expenses which is about R13 crore last year.
He alleged that Ranbaxy is killing Zenotech business. ?Ranbaxy has not cleared several claims, including sale of drugs manufactured by the company besides non-payment of R95 lakh which was billed in March 2011,? he said, adding that he was ready for a buy back.
Over 200-odd Zenotech employees have gone on an indefinite strike for non-payment of salaries.