Sun Pharma, Ranbaxy gain on closure of merger deal

At 1230 hours, Sun Pharma was up 2% at Rs 1,061, while Ranbaxy Laboratories up 1.7% at Rs 834 on the NSE.

Shares of Sun Pharmaceutical Industries and Ranbaxy Laboratories were trading higher by about 2% each on the bourses after Sun Pharma announces closure of merger deal with Ranbaxy.

At 1230 hours, Sun Pharma was up 2% at Rs 1,061 on the National Stock Exchange (NSE). The stock hit a high of Rs 1,068 during intra-day trade.

Shares of Ranbaxy Laboratories were up 1.7% at Rs 834 after hitting high of Rs 839 in early morning trade.

The company begins the integration of Ranbaxy’s business following the successful closure of its merger, Sun Pharma said in a statement.

The combination allows Sun Pharma to significantly expand its R&D capabilities and global presence, especially across emerging markets, enhance product portfolio and market depth in India, US as well as Rest of the World markets and to improve strategic flexibility, ability to pursue partnerships and strengthen merger and acquisition (M&A) bandwidth, it added.

Following the closure of this transaction, Ranbaxy will be delisted from the Indian Stock Exchanges. Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy.

Meanwhile, the committee of the directors of the Sun Pharmaceutical Industries has fixed April 07, 2015 as the record date in order to determine the names of the shareholders of erstwhile Ranbaxy who would be entitled to receive 8 (eight) equity shares of Re 1 each of the company for every 10 (ten) equity shares of Rs 5 each of erstwhile Ranbaxy held.