Shareholders of Zenotech move HC on Daiichi offer

Adding to the woes of Daiichi Sankyo, the minority shareholders of Zenotech, an associate company of Ranbaxy, have moved the Chennai High Court against the "low" open offer price quoted by Daiichi to acquire more Zenotech shares.

The shareholders want Daiichi to offer the same price (Rs 160) that was offered by Ranbaxy while acquiring a 45 per cent stake in Zenotech a year ago. Daiichi has to make an open offer as it has indirectly become the major shareholder of Zenotech by virtue of the Ranbaxy acquisition.

Admitting the suit two weeks ago, the court had issued notices to all respondents — Sebi, Zenotech, Ranbaxy and Daiichi Sankyo — to give replies in two weeks. The matter was expected to come up for hearing during this week.

The complaint is against a public announcement made by Daiichi offering Rs 113.62 per Zenotech share in the open offer. The petitioners want Sebi to stall the open offer proceedings until the pricing issue is resolved.

"Pursuant to the public announcement to the equity shareholders of Zenotech made by the managers of Daiichi Sankyo (ICICI Securities), they are expected to file their offer documents at any time. It has therefore become imperative for Sebi to act fast and settle the price issue by asking Daiichi to adhere to and pay Rs 160, the price which was offered to the minority shareholders by Ranbaxy," the petition says.

Meanwhile, Daiichi has shown no intention to revise its offer price. According to its public announcement, the Japanese drug major plans to purchase a 20 per cent stake of Zenotech at Rs 113.62 per share. Depending on the Sebi approval, the offer, to acquire 68.85 lakh shares, will open on March 13 and close by April 1.