Daiichi Sankyo agrees to vote its shares in Ranbaxy in favor of Sun Pharma’s Acquisition
Posted: 7 April 2014 | | No comments yet
Pursuant to the merger transaction announced between Ranbaxy Laboratories Limited and Sun Pharmaceutical Industries Ltd. announces that it has agreed to vote its shares in Ranbaxy in favor of Sun Pharma’s acquisition of 100%…
Pursuant to the merger transaction announced between Ranbaxy Laboratories Limited (“Ranbaxy”) and Sun Pharmaceutical Industries Ltd. (“Sun Pharma”), whereby Ranbaxy has agreed, subject to certain conditions, to merge with Sun Pharma under a court approved process in India, Daiichi Sankyo Company, Limited (“Daiichi Sankyo”) announces that it has agreed to vote its shares in Ranbaxy in favor of Sun Pharma’s acquisition of 100% of Ranbaxy through the merger process which entails a share swap. Upon the effectiveness of the merger, Ranbaxy shareholders will receive 0.8 shares of Sun Pharma for each share of Ranbaxy.
Daiichi Sankyo currently holds 63.4% in Ranbaxy. Pursuant to the merger, Daiichi Sankyo will receive a stake of about 9% in the expanded Sun Pharma. Daiichi Sankyo will have the right to nominate one Director to Sun Pharma’s Board of Directors.
The transaction is expected to close by December 2014, pending shareholder, court and regulatory approvals and other customary conditions. Daiichi Sankyo is currently in the process of determining the impact of this transaction on earnings. Daiichi Sankyo is committed to making timely disclosures once details are finalized.
The combination of Sun Pharma and Ranbaxy will create the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India. Daiichi Sankyo looks forward to continuing to pursue its strategy for the development of its hybrid business model through the new partnership with Sun Pharma.