New Delhi: India’s stock markets regulator, the Securities and Exchange Board of India (Sebi), is awaiting a response from the merchant bankers in the buyout deal of Ranbaxy Laboratories Ltd, after which it would “give the go-ahead” for the open offer to be floated by Daiichi Sankyo Co. Ltd, its Tokyo-based buyer, for obtaining a majority stake.
Daiichi, which had agreed to buy the 34.8% promoter equity in India’s largest medicine maker by sales, said in a newspaper advertisement on Thursday that it was delaying its open offer for shoring up an additional 20% equity as the necessary regulatory approvals were not in.
“Price will remain the same. Except for the date (of the offer), there is no change. We don’t have the regulatory approval” to go ahead, Yasuki Minobe, spokesman for Daiichi Sankyo said in a telephone interview.
He clarified that there was “no hesitation” on the part of his company to go ahead with the $4.6 billion (R19,550 crore today) deal.
The “revised schedule of activities in respect of the offer” would be announced after “receiving Sebi’s observations”, the offer’s manager, ICICI Securities Ltd said in the ad.
A Ranbaxy spokesman said in an email statement that “the delay...is procedural in nature”.
“The offer letter is ready” and the regulator is waiting to hear from the merchant bankers assuring there is no complaint from shareholders, or any other legal issues, said a person close to the development. “Once the regulator hears from investment bankers (this week itself), it will give the go-ahead.”
No date for launching the open offer has been specified by either Daiichi Sankyo, or Ranbaxy, but both companies confirmed that the terms of the deal, including the price, are unchanged.
The offer, for buying the stock in the open market at Rs737 per share, was originally scheduled to start on 8 August and close on 20 August.
Shares of the Gurgaon-based drug maker closed 1.3% higher at Rs499.10 a share on the Bombay Stock Exchange on Thursday.