Daiichi slashes Zenotech offer by a third, faces ire

Minority shareholders of Hyderabad-based Zenotech Laboratories, a biotech company whose 46 per cent shares were acquired by Ranbaxy last year, are up in arms against pharma major Ranbaxy’s new owner Daiichi Sankyo for allegedly failing to purchase 20 per cent of Zenotech shares at a pre-determined price of Rs 160 per share.

Zenotech management said the Daiichi board today decided to pay Rs 113.62 per share for the shares purchased through the open offer. A Daiichi press release said the company has received the board approval for implementation of the open offer but did not disclose the price at which it intends to purchase Zenotech shares.

In a quick response, Zenotech called upon Daiichi management to revise the share price to Rs 160. Zenotech’s shareholders are in the process of writing to Daiichi board and also making representations to Secutiry and Exchanges Board of India and Foreign Investment Promotion Board on the matter.