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Daiichi open offer for Ranbaxy to be delayed

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Bloomberg Mumbai
Last Updated : Jan 29 2013 | 1:55 AM IST

Daiichi Sankyo, the Japanese drugmaker seeking to buy India's Ranbaxy Laboratories, said its offer to buy as much as 20 per cent from shareholders will be delayed because of regulatory hurdles.

The exact timing of the purchase is ``uncertain,'' Daiichi spokesman Toshiaki Sai said in Tokyo today. The delay was ``procedural in nature'' and the revised dates will be announced soon, Ranbaxy said in a statement in New Delhi.

"The Ranbaxy, Daiichi Sankyo deal is on track. There is no change in the terms and conditions of the deal. The delay in the open offer is procedural in nature. The revised date of open offer will be communicated soon," said a Ranbaxy spokesperson.

Daiichi Sankyo agreed on June 11 to buy the 34.8 per cent stake of India's biggest drugmaker from the founding Singh family and a portion of about $1 billion (over Rs 4,200) of preferential stock.

The Japanese drugmaker must also offer to buy a further 20 per cent from shareholders, under Indian takeover rules.

Ranbaxy closed 1.29 per cent up to Rs 499 in Mumbai trading.

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The new schedule will be announced after receiving the response of the Indian stock-market regulator on the share-purchase documents, Daiichi Sankyo said in a public announcement.

The Japanese drugmaker had submitted the documents with the Securities & Exchange Board of India (Sebi) on June 27.

Ranbaxy reiterated that the transaction with Daiichi, Japan's third-largest drugmaker, will proceed and there are no changes in the terms and conditions of the agreement.

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