Daiichi Sankyo Co. said it will delay acquiring 20 percent of India's Zenotech Laboratories Ltd. after the Chennai High Court ordered a halt to the offer.
Japan's third-largest drugmaker had planned to pay 113.62 rupees (about ¥218) for each Zenotech share starting Wednesday as part of a requirement relating to its purchase of a controlling stake in Ranbaxy Laboratories Ltd. last year.
The Securities and Exchange Board of India approved the Zenotech stake purchase on June 30, said Masaya Tamae, a spokesman at Daiichi Sankyo. "We will postpone our offer until the court clears it," Tamae said.
Daiichi Sankyo bought 64 percent of Ranbaxy, which owns 47 percent of Hyderabad, India-based Zenotech. Under Indian takeover rules, Daiichi Sankyo must buy 20 percent of Zenotech as part of the Ranbaxy purchase.
Zenotech's minority shareholders complained to the Chennai High Court that they were compelled to accept Daiichi Sankyo's offer price, which is lower than what Ranbaxy paid for its stake, the Economic Times reported Wednesday. The stakeholders said Daiichi Sankyo must pay the same price as Ranbaxy did, at 160 rupees (about ¥307) a share, the newspaper said.
"Some minority shareholders claim the offer price from Daiichi Sankyo is too low." Tamae said. "We think the offer price is fair."
The 20 percent stake in Zenotech is valued at 782.3 million rupees (¥1.5 billion) based on the offer price of 113.62 rupees and at 1.1 billion rupees (¥2.1 billion) at 160 rupees per share.
Hisamitsu's U.S. buy
Kyodo NewsHisamitsu Pharmaceutical Co. will acquire Noven Pharmaceuticals Inc. of the United States for about $430 million in a move aimed at expanding its Salonpas pain relief skin patch and other businesses in the U.S. market.
The two companies have "entered into a definitive merger agreement under which Hisamitsu would acquire all of the outstanding common shares of Noven through a tender offer," Hisamitsu said Tuesday.