Hyderabad: The promoter and managing director of Zenotech Laboratories Ltd, Jayaram Chigurupati, is seeking the intervention of the markets regulator, Securities and Exchange Board of India (Sebi), on Japanese drugmaker Daiichi Sankyo’s open offer to buy the company’s shares.
“Daiichi is trying to buy Zenotech (at) a lower price by violating the earlier agreement on share price. We won’t accept any price less than Rs160 per share. Sebi should look into the issue to protect investors’ interest,” Chigurupati said on Wednesday.
The proposed open offer by Daiichi Sankyo to buy another 20% in the Hyderabad-based biopharmaceutical company was halted by the Madras high court on Tuesday following a petition by some minority investors.
Ranbaxy Laboratories Ltd, now owned by Daiichi Sankyo, has a 45% stake in Zenotech. Chigurupati holds nearly 26% stake in Zenotech.
“Daiichi is violating share purchasing agreement, which was signed earlier to make open offer at Rs160 per share. Now, it has made the offer at Rs113.62 per share, 29% lower than the accepted price,” Chigurupati said.
Some more minority shareholders are also expected to approach the court to halt Daiichi’s efforts to take over the company at a lower valuation, he said.
“Zenotech is a biopharma company with high-value oncology products. We demand (an) independent valuation of the company that will benefit shareholders,” he said.
Chigurupati, who filed a petition before the Chennai bench of the Company Law Board, to intervene in the case, said he may approach the Securities Appellate Tribunal, too, if necessary, to halt Daiichi’s efforts to buy the shares at a lower price.
On Wednesday, shares of Zenotech Laboratories gained 1.71% to close at Rs107.20 on the Bombay Stock Exchange.