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news.Daiichi Sankyo Company and Ranbaxy Laboratories have announced that the committee of the board of directors of Ranbaxy has approved the allotment of equity shares and warrants on a preferential basis to Daiichi Sankyo. With this Daiichi Sankyo has acquired 52.5% of the equity share capital of Ranbaxy comprising 220.7 million shares.
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Accordingly, Ranbaxy has become a subsidiary of Daiichi Sankyo. Ranbaxy has now received through the preferential issue of equity shares and warrants an amount of $736 million from Daiichi Sankyo.
With the completion of the transactions to date Daiichi Sankyo will hold a majority stake in Ranbaxy. However, Ranbaxy will continue to operate as an independent and autonomous company and will closely co-operate with Daiichi Sankyo to explore and optimize the growth opportunities across the pharmaceutical value chain.
Malvinder Singh will be appointed chairman of the board of directors in addition to his existing responsibilities as CEO and managing director of Ranbaxy. He will also become a member of the senior global management of Daiichi Sankyo. Atul Sobti will continue in his current role as COO and a member of the board of Ranbaxy. All management and people structures across Ranbaxy will continue as they are at present.
Mr Singh said: “The substantial cash being infused by Daiichi Sankyo at this stage will be used to expand our business aggressively through the organic and inorganic routes while significantly strengthening our balance sheet, making it leveragable for newer initiatives.”