Daiichi Sankyo Grabs 52.5% Stake in Ranbaxy

Author: Anurag Bhullar

The Ranbaxy-Sankyo deal moves one step ahead to completion when the Board of Directors of Ranbaxy Laboratories finally gave a green signal by approving the allotment of equity shares and warrants to Daiichi on a preferential basis. With this move, the Japanese company has now acquired a stake of 52.5 percent of total equity share capital in the Indian pharmaceutical major, Ranbaxy.

Going through this window of direct stake selling, Ranbaxy has received a sum of Rs 3585 crore from Daiichi by making preferential issue of equity shares and warrants.

Daiichi has now holds the majority stake in the pharmaceutical company.
	On the other hand, Ranbaxy is free to operate as a separate entity and will work together with Daiichi with a view to explore potential growth opportunities across the pharmaceutical sector. Both the firms will try to assimilate the synergies of each other’s businesses in order to exponentially enhance the scope and efficiency of the operations. Malvinder Singh said that the amount of cash received through the deal would be substantially used in to strengthen the balance sheet and make it more leverageable for newer business initiatives. Shares of Ranbaxy Laboratories gained on Monday by surging 2.15 percent to Rs 261.70 per share.