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General Ranbaxy sold

Discussion in 'Hard Talk' started by kds1980, Jun 12, 2008.

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  1. kds1980

    kds1980 India
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    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.
     
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  3. kds1980

    kds1980 India
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    Its sad to see that only sikh business family of India have sold their company
     
  4. Sikh80

    Sikh80
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    Yes, I also feel sorry that it has happened on account of the protracted family fued. It may be an achievement of malvinder to bring about a change in the corporate culture by merger or amalgamation in the name of globalisation but it was not required at all at this stage.it appears a decision guided by family factors than on by commercial sense.Ranbaxy has been a Pharma giant and could have done much more to the service of globe even by remaining an independent entity.

    I also do not feel elated by the news.
     
  5. Huck_Finn

    Huck_Finn
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    things were way beyond what a family run organization could manage.

    am not sure if this was the best way, but they needed serious fundinga dn bringing in a cash sloshed partner as funding major is an easy way to do it.
     
  6. dalbirk

    dalbirk
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    Ranbaxy though run by a Sikh family , they had their inclination towards Radha Soamis as his mother is the Nimmi is the daughter of Charan Singh , the ex Maharaj of RSSB , so he was Malvinder's Nana Ji . But certainly a point to notice is why Sikh family run bussinesses don't last very long as compared to Hindus like Munjals ( Hero Group ) , TVS etc .
     
  7. kds1980

    kds1980 India
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    One should learn How to run business from ambani's.Dhirubhai's reliance is now a world famous group.The comined wealth of both the sons exceeds BIll Gate's wealth.Though they have divison mukesh's property is worth 45 billion$ while anil's property is around 43billion $.So even after division they are among world's richest person's.On the other hand malvinder is now reduced to an employee of his japanese masters.
     

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