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Report on Acquisition of Ranbaxy

Report on Acquisition of Ranbaxy

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Published by riteshkachhiya
hi, friend it is report on acquisition of ranbaxy by daiichi sankyo ,japan.
hi, friend it is report on acquisition of ranbaxy by daiichi sankyo ,japan.

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Published by: riteshkachhiya on Jan 26, 2010
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01/17/2013

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 AGROUP ASSIGNMENT ON ACQUISITION OF
 
BY 
SUBMITED TO;SUBMITED BY;MRS. PUJA BHATT,AMIN JIGAR.DIRECTOR,EKTA SHAH.I.M.I.CHIRAG BHADANG. VIPA SHAH.
DAIICHI SANKYO COMPANY LTD. & RANBAXY LABORATORIES LTD.Page 1
 
 BHAVNA JAIN. SUNNY SAMRANI. EKTA PATEL. RITESH KA.PATEL.
Sr.No.ParticularsPageNo.
AAbout The Acquisition
03
BHistory of the Companies
05
CCompanies Profile
09
DReasons for the Deal
14
EFinancial Data
15
FMarket Share of the Companies
18
GSWOT Analysis of IndianPharma.Industry
20
HAlternate Strategies of the companies
23
IConclusion
24
DAIICHI SANKYO COMPANY LTD. & RANBAXY LABORATORIES LTD.Page 2
 
 
On 11
th
June 2008, Daiichi Sankyo CompanyLimited, one of the largest pharmaceutical companies in Japan and Ranbaxy LaboratoriesLimited , among the top 10 generic companies in the world and India’s largest pharmaceutical company, announced that a binding Share Purchase and Share SubscriptionAgreement (the “SPSSA”) was entered into between Daiichi Sankyo, Ranbaxy and the Singhfamily, the largest and controlling shareholders of Ranbaxy (the “Sellers”), pursuant towhich Daiichi Sankyo will acquire the entire shareholding of the Sellers in Ranbaxy andfurther seek to acquire the majority of the voting capital of Ranbaxy at a price of 
Rs737 pershare
with the total transaction value expected to be between US$3.4 to US$4.6 billion(currency exchange rate: US$1=Rs43). In terms of the Indian currency, approximatelyRs.20,000 corers.The SPSSA has been approved by the Boards of Directors of bothcompanies. Daiichi Sankyo is expected to acquire the majority equity stake in Ranbaxy by acombination of;
(i)
Purchase of shares held by the Sellers(54.30%-Singh & his family),
(ii)
Preferential allotment of equity shares(9.12% to buyer),
(iii)
An open offer to the public shareholders for 20% of Ranbaxy’s shares, as per IndianRegulation Act, And
(iv)
Daiichi Sankyo’s exercise of a portion or all of the share warrants to be issued on aPreferential bases. All shares will be acquired/issued at a price of rs.737 per share.This purchase price represents a
premium of 53.5%
toRanbaxy’s average daily closing price on the National Stock Exchange for the three monthsending on June 10, 2008 and 31.4% to such closing price on June 10, 2008.The deal was financed through a mix of bank debt facilities andexisting cash resources of Daiichi Sankyo. Nomura Securities Co., Ltd., the Japan headquarteredinvestment bank, acted as the exclusive financial advisor, Jones Day as the legal advisor outsideIndia, P&A Law Offices as the legal advisor in India, Mehta Partners LLC as the strategic business advisor and Ernst & Young as the accounting and tax advisor to Daiichi Sankyo.
DAIICHI SANKYO COMPANY LTD. & RANBAXY LABORATORIES LTD.Page 3

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