Zenotech slams Daiichi's open offer, to go to Sebi

Hyderabad-based pharma firm Zenotech Laboratories today threatened to take the Japanese drug maker Daiichi Sankyo to market regulator Sebi for not honouring a commitment to make an open offer at a previously agreed upon price of Rs 160 per share.

While rejecting the open offer price of Rs 113.62 per share made by Daiichi Sankyo for acquiring 20 per cent additional stake in the company, Zenotech said the current offer price was way below the earlier agreed price.

"I have written a mail to the Board of Directors of Daiichi Sankyo asking them to honour the commitment made by the management team and revise the open offer price to Rs 160 per share, the price at which Ranbaxy acquired stake in Zenotech," Zenotech Laboratories Managing Director Jayaram Chigurupati told PTI.

Daiichi's Board should know that the agreement to offer Rs 160 per share was reached way back in July 2008, he added.

"I will also write to (the) Securities and Exchange Board of India (Sebi) about the price offered by the Japanese major which is against Indian rules and regulations," he added.

Daiichi Sankyo officials could not be contacted for comments.
    
Daiichi Sankyo had to make an open offer for Zenotech after the Japanese firm's acquisition of Ranbaxy Laboratories last year.
    
Ranbaxy had picked up 38% stake in Zenotech in October 2007, taking its total share holding to 45% and said it would launch an open offer for acquiring additional 20% in the company while ruling out a complete takeover.
   
"The transaction of the deal was closed in January last year and Ranbaxy was scheduled to launch the open offer at Rs 160 per share but it was deferred," Chigurupati said.