To enhance equity stake in Zenotech Laboratories to 45%
GURGAON, India, Oct. 3 /PRNewswire/ -- Ranbaxy Laboratories Limited (Ranbaxy) and Zenotech Laboratories Limited (Zenotech) today announced the signing of Definitive Agreements, providing for an increase in equity stake by Ranbaxy from its current 7% to 45% at a price of Rs. 160 per share aggregating to Rs. 214 Crores. This involves:
(a) Purchase of shares from the existing Promoters
(b) Preferential Offer to Ranbaxy by Zenotech
The above triggers a mandatory open offer by Ranbaxy to other shareholders of Zenotech, at a price of Rs. 160 per share or as determined by SEBI regulations.
Post the offer, the existing Promoter Group of Zenotech will have a 25% stake in its expanded equity capital. Dr. Jayaram Chigurupati shall continue as the Managing Director.
Speaking on the development, Mr. Malvinder Mohan Singh, CEO & MD, Ranbaxy, said, "The increasing importance of Biologics in the Global Pharmaceutical industry and the opening up of the generic Biologics in the regulated markets, makes it opportune for Ranbaxy to enhance its presence in this area. Speciality injectables, that include Oncology products, constitute an attractive segment that underpins our strategic intent. Having worked with Zenotech for almost two years, we believe that this investment and partnership provides a strong platform for us to leverage these opportunities."
Commenting on the transaction, Dr. Jayaram Chigurupati said, "Ranbaxy's increase in stake will enable Zenotech to concentrate on its core competencies of cutting edge Drug Development and Specialized Manufacturing. Access to Ranbaxy's unmatched Global market reach, Quality & Compliance and Regulatory & IP expertise will enable us to take the business into its next phase of growth."
Zenotech has received three Indian approvals for Oncology
Biopharmaceuticals i.e. GCSF (Granulocyte Colony Stimulating Factor),
|SOURCE Ranbaxy Laboratories Limited|
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