SAT asks Daiichi to make Zenotech open offer at Rs160/share

The Securities Appellate Tribunal (SAT) today directed Japanese drug-maker Daiichi Sankyo to make an open offer to shareholders of Zenotech Labs at Rs 160 per share.     

The tribunal dismissed a Sebi move that allowed Daiichi to go for the offer at Rs 113 a share.

"The bench today read out the operative part of the order, which said that Daiichi has to make an open offer (to the shareholders of Zenotech) at Rs 160 per share," a source told PTI here.     

Daiichi Sankyo is to make an open offer to Zenotech's shareholders to acquire 20 per cent additional stake in the Hyderabad-based firm.     

The Japanese drug major holds 46.85 per cent stake in Zenotech through its majority shareholding in Ranbaxy Laboratories.     

Daiichi had announced an open offer to acquire 6.8 million shares, or a 20 per cent stake, in Zenotech, an affiliate of Ranbaxy, in February this year.     

The two companies have been battling in courts for months over the price of an open offer.

Jayaram Chigurupati, who is a shareholder and Managing Director of Zenotech, had moved the tribunal against market regulator Sebi's nod to Daiichi for an offer price of Rs 113 per share.

Daiichi's offer price of Rs 113 per share ran into trouble when Zenotech complained to market regulator Sebi, that the Japanese firm was not honouring its earlier commitment of Rs 160 per share.     

The market regulator upheld Daiichi's position, following which Zenotech moved the Madras High Court seeking quashing of Sebi's nod for the offer price of Rs 113 a share, which the Court dismissed.     

The scrip of Zenotech Labs jumped by 19.96 per cent on the Bombay Stock Exchange today at Rs Rs 125.90 in closing trade.