In a new twist to Ranbaxy-Zenotech takeover dispute, Zenotech Laboratories founder Jayaram Chigurupati has moved the Company Law Board (CLB) seeking permission to buy back shares from Ranbaxy and its Japanese owner Daiichi Sankyo.
Chigurupati said he is willing to pay about Rs 130 a share to take back Zenotech, which has been in rough weather after being acquired by Ranbaxy in 2007.
After the deal, Ranbaxy itself was bought by Daiichi, which declined to pay as much for Zenotech open offer as the company was committed (Rs 160 per share) by Ranbaxy.
"I am willing to buy all the shares they (Ranbaxy and Daiichi) hold and buy back the company from them," Chigurupati told PTI, after having moved CLB a few days ago.
"I (have) submitted a proposal in CLB. It may come up for hearing on Tuesday. Even if it costs Rs 300 crore, I want to buyback and revive it and bring back the glory," he added.
In January 2008, Ranbaxy acquired 45% stake in Zenotech, but six months later Ranbaxy itself got acquired by the Japanese pharmaceutical major Daiichi.
Ranbaxy and Daichi together hold 66.84% share in Zenotech, and Chiguruati holds 26%. The rest is held by the public.
Replying to query he said, "Whoever wants to make an offer, the company has to be delisted first and give a chance to the minority shareholders to exit from the company. I am willing to do that."
As the promoter share is more than 90%, there is a necessity of delisting of the company.
"It largely depends on CLB’s decision. If it accords promoter status to Chigurupati, then he can go for buyback and delisting," said Satish Kanteti of Zen Securities.
Meanwhile, Zenotech employees, who are on strike for the past three days, have held a series of meetings with senior officials of Ranbaxy and put forward three demands.
They have demanded at least Rs 15 crore business per annum from Ranbaxy. They have also demanded a technical person to be appointed as managing director, besides seeking Rs 15 crore from Ranbaxy as the revival package for the company which has accumulated losses of Rs 60 crore.
When contacted, a spokesperson of Ranvaxy said, "Ranbaxy and other shareholders have entrusted the management of Zenotech to the legitimately and legally appointed Board of Zenotech."
