Sun Pharma shares jumped over 5 per cent on Friday it said that said the umbrella pact and transaction agreements signed with Daiichi Sankyo and its overseas subsidiaries have been terminated due to divestment of Ranbaxy by the Japanese firm.
The share price of the company closed 5.83 per cent up at Rs 825.50.
“The parties have terminated the umbrella agreement as well as the transaction agreements executed between Daiichi Sankyo Company Ltd, Daiichi Sankyo (Thailand) Ltd Ranbaxy, Ranbaxy (Netherlands) BV, Ranbaxy Unichem Company Ltd, Ranbaxy (Thailand) Company Ltd due to divestment of Ranbaxy by Daiichi Sankyo Company Ltd,” Sun Pharma said in a regulatory filing.
Daiichi Sankyo, Daiichi Sankyo (Thailand) Ltd, Sun Pharmaceutical Industries Ltd, Ranbaxy (Netherlands) BV and Ranbaxy (Thailand) Company Ltd entered into a termination agreement on May 26, 2016, it added.
The agreements were executed between Daiichi and Ranbaxy, including their overseas subsidiaries, on June 12, 2013. In April 2014, Sun Pharma had announced the acquisition of troubled rival Ranbaxy in an all-stock transaction worth $4 billion that includes $800 million debt.
The parties agreed that the umbrella agreement as well as the executed transaction agreements will be terminated with effect as of the closing date, the Mumbai-based drug major said.
Last year Daiichi sold its entire stake of around 9 per cent in Sun Pharmaceutical Industries for over Rs 20,420 crore, which it received after merger of Ranbaxy in the Indian firm, ending its seven years of tumultuous stay in the country.