Madras HC halts Daiichi's open offer for Zenotech

Zenotech Laboratories today said the Madras High Court has ordered Japanese drug firm Daiichi Sankyo not to go ahead with the planned open offer for an additional 20 per cent stake in the pharma firm.     

"By its order, the Hon'ble Madras High Court (Madurai Bench) has granted an interim injunction in connection with the offer (for an additional 20 per cent)," following complaints received from its minority stakeholders, Zenotech said in a filing to the Bombay Stock Exchange.     

Earlier in February, Daiichi Sankyo had announced it would launch an open offer for Zenotech to acquire 68.85 lakh shares or a 20 per cent stake.     

Daiichi had said it would pay up to Rs 78.23 crore, at Rs 113.62 a share, to Zenotech shareholders for the stake in the open offer, which was scheduled to begin on July 15 and close on August 3.     

However, the offer ran into controversy as the pharma firm complained to SEBI against Daiichi for allegedly not honouring a commitment to make the offer at Rs 160 per share.     

"In view of the receipt of the order before July 15, 2009, the shareholders of the Target Company (Zenotech) are requested to note that the Offer will not open as on July 15, 2009," the filing added.

The shareholders are hereby advised not to tender any shares held by them and no shares will be accepted until an announcement is made in respect of the revised schedule of activities for the offer, the filing added.     

Ranbaxy picked up a 38 per cent stake in Zenotech, an affiliate of Ranbaxy, taking its shareholding in the Hyderabad-based firm to 45 per cent.     

Post the share purchase agreement between Daiichi and Ranbaxy in June 2008, it was mandatory for the Japanese firm to make an open offer to Zenotech.     

Shares of Zenotech were trading at Rs 107.10, up 1.61 per cent on the BSE today.