Daiichi Sankyo says bid for India’s Zenotech on hold

Daiichi Sankyo says bid for India’s Zenotech on hold
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First Published: Wed, Jul 15 2009. 09 31 AM IST
Updated: Wed, Jul 15 2009. 09 31 AM IST
Tokyo: Japan’s third-largest drugmaker, Daiichi Sankyo, said on Wednesday an Indian court has ordered it to suspend its planned open offer for shares in India’s generic drug maker Zenotech Laboratories because of opposition by some stakeholders.
Daiichi Sankyo, which bought a 64% stake in India’s largest generic drug maker Ranbaxy Laboratories last year, said in January it aimed to buy 20% of Zenotech, in which Ranbaxy has a 47% stake, to comply with India’s ownership requirement for indirect stakeholders.
Daiichi Sankyo had planned to launch the open offer on Wednesday with a deadline of 3 August.
“We had expected our offer to go into effect by around this time, but it now looks likely to be some time before the offer starts. We will wait and see future developments,” a Daiichi Sankyo spokesman said.
The spokesman declined to give details of the court order.
Zenotech’s minority shareholders complained to the Madras high court that Daiichi Sankyo’s offer to pay Rs113.62 per share was too low and that they would seek Rs160 per share, India’s Economic Times reported on Wednesday .
Zenotech shares closed on Tuesday at Rs105.40. Daiichi Sankyo shares edged up 0.7% to ¥1,685 on Wednesday.
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First Published: Wed, Jul 15 2009. 09 31 AM IST