Zenotech wants independent valuation for Daiichi open offer

Zenotech today asked Japanese drug firm Daiichi Sankyo, whose open offer to buy 20 per cent more in the bio-technology firm hit legal hurdles, to go in for independent valuation to determine open offer price.     

"I have written to Daiichi Sankyo that instead of getting into legal hurdles they should appoint an independent investment banker to find out the valuation of the company and based on that valuation open offer prices should be announced," Zenotech CEO Jayram Chirugurupati said over telephone.     

Yesterday, the Madurai bench of the Madras High Court ordered the Japanese firm not to go ahead with the process of open offer, which was scheduled to begin today.     

In February, Daiichi Sankyo had announced it would launch an open offer at a price of Rs 113 per share for Zenotech to acquire 68.85 lakh shares or a 20 per cent stake in it.     

Ranbaxy, which had about 45 per cent stake in Zenotech, was acquired by Daiichi Sankyo, and the stake was transferred to the Japanese firm. Under the Securities and Exchange Board of India (SEBI) rules, Daiichi had to launch an open offer to acquire additional 20 per cent stake in Zenotech.     

Daiichi had said it would pay Rs 78.23 crore, at Rs 113.62 a share, to Zenotech shareholders 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.

When contacted a Daiichi Sankyo spokesperson said that the company is currently evaluating the order and has postponed the launch of the open offer.    

Asked whether the company has any plans to revise the open offer price, the spokesperson said, "The price of open offer was determined as per the SEBI guidelines and it has no plans to change it."