Ranbaxy family sells stake to Daiichi

This surely has to be the most closely guarded and shocking news in the industry this year. The Singhs have really stuck gold with this deal. A lot of the money generated out this deal will be pumped into Fortis Healthcare and Religare Financial Services. Only time will tell if Malvinder Singh has pulled off a coup or it’s a decision he will live to regret.

The Indian promoters of Ranbaxy, the Singh family, have agreed to sell their stake to Daiichi Sankyo Company Ltd of Japan in one of the largest deals in the Indian pharmaceutical space.

The all-cash deal is valued at $4.6 billion (Rs 19,780 crore) which will see Daiichi acquiring 51 per cent in Ranbaxy, India’s largest domestic drug company, at Rs 737 a share, a 53.5 per cent premium to the average daily closing price on the National Stock Exchange for three months ending June 10, 2008, and 31.4 per cent to the June 10 closing price.

This price puts Ranbaxy’s enterprise value at $8.5 billion.

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