Daiichi Sankyo Company Ltd, which is a major Japanese pharmaceutical company, is going to acquire a majority stake in Ranbaxy Laboratories Ltd., the largest drug manufacturer in India. The two have declared a binding share purchase and share subscription agreement (SPSSA) between Daiichi Sankyo, Ranbaxy and the Singh family, who happen to be the biggest and controlling shareholders of Ranbaxy.  

 

The Japanese pharmaceutical company will acquire the complete shareholding of the Ranbaxy sellers and thereafter focus on getting a bulk of the voting capital of Ranbaxy at a price of Rs 737 each share, with the complete transaction value estimated to be around $3.4 billion to $4.6 billion. On the post closing basis, the transaction would value Ranbaxy at $8.5 billion. Mr Malvinder Singh will continue as the CEO and MD of the company apart from also assuming the post of the Chairman of the Board, after closure.