Zenotech asks Sebi to stop Daiichi open offer

Zenotech Laboratories has asked SEBI not to let Daiichi Sankyo and its subsidiary Ranbaxy Lab proceed with their open offer to acquire shares of the company, alleging the proposed price was too less and amounted to oppression and exploitation of minority shareholders.
    
Hyderabad-based Zenotech and Daiichi Sankyo had been at loggerheads ever since the Japanese firm announced an open offer to acquire 20 per cent stake in the firm for Rs 114 per share against Rs 160 per share demanded by the drugmaker.    

"The honourable Board may be pleased not to process and finalise the offer document to be submitted by Daiichi (Sankyo) until a favourable ruling is giving (given) protecting the interests of minority shareholders," Zenotech Laboratories Chairman Jayaram Chigurupati said in a letter to SEBI Chairman C B Bhave.

He said when Daiichi Sankyo acquired Ranbaxy last year, the Japanese firm also took control of over 15 per cent stake in Zenotech by virtue of the Gurgaon-based company having a stake of 46.95 per cent in it, which automatically triggered a mandatory open offer.     

"In view of the mandatory provisions of the SEBI Regulations...Daiichi ought to have made the public announcement for the open offer to buy the shares only at Rs 160 per shares as otherwise, it amounts to oppression and exploitation of the minority share holders," Chigurupati said.     

Ranbaxy had acquired 46.95 per cent of Zenotech in January last year at Rs 160 per share, Chigurupati said. Daiichi Sankyo ought to have made the open offer at same price and announce it within four days of acquiring majority stake in Ranbaxy last June, he added.