Thu, Jun 12 01:35 AM Ranbaxy Laboratories Ltd, India largest pharmaceutical company by sales, would now be majority owned by Japan's Daiichi Sankyo Company. In an all cash deal, the largest in India's pharmaceuticals space, Ranbaxy promoters led by CEO Malvinder Mohan Singh have agreed to sell their stake, 34. 8 per cent, to Daiichi Sankyo for Rs 9,576 crore ($2.4 billion) or Rs 737 per share, the company said on Wednesday. Along with open offer for 20 per cent stake, which Daiichi Sankyo will make soon, the Japanese company will shell out between $3.4 billion and $4. 6 billion for the controlling stake, depending on the response to the open offer. "On the consummation of the transaction, Daiichi Pharmaceutical will have 50. 1 per cent stake in the company," Singh said. "This was emotional decision for the family. However, going forward it would immensely benefit all the stake holders including investors, employees and consumers." The deal values Ranbaxy at $8. 5 billion (Rs 35,000 crore), or Rs 737 per share, and would catapult the combined entity to the rank of 15 among the world's biggest drug makers. Currently, Daiichi is ranked 22. Ranbaxy shares had gained 10 per cent through the past three trading sessions in anticipation of the deal, but on Wednesday the stock closed nearly flat at RS 506.80. Even after selling his entire stake, Malvinder Mohan Singh will continue as chief executive and also become chairman of the board of the Indian group. In addition to the share transfer from promoters, Ranbaxy would issue fresh equity shares and warrants to Daiichi. Singh said described the decision as "a significant milestone in our mission of becoming a research-based international pharmaceutical company." More than 90 per cent of Ranbaxy's sales currently come from generic products. The move will "complement our strong presence in innovation with a new, strong presence in the fast growing business of non-proprietary pharmaceuticals," said Takashi Shoda, chief executive of Daiichi Sankyo. The transaction is expected to be completed by March 2009.