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UPDATE 1-Daiichi Sankyo to delay offer for Zenotech
August 10, 2009 / 4:21 AM / 8 years ago

UPDATE 1-Daiichi Sankyo to delay offer for Zenotech

* India’s appeal court to hold hearing on Sept. 4 * Daiichi Sankyo shares little affected

TOKYO, Aug 10 (Reuters) - Japan’s No.3 drugmaker Daiichi Sankyo (4568.T) said on Monday it would again delay its open offer for a 20 percent stake in India’s Zenotech Laboratories (ZENL.BO) after an Indian court asked it to postpone the launch.

The Securities Appellate Tribunal requested Daiichi Sankyo put the offer on hold because of a petition by one or more minority shareholders of Zenotech about the price of the offer, which was originally scheduled to start on Tuesday, Daiichi Sankyo spokesman Yasunori Sasaki said.

The appeal court will hold a hearing on Sept. 4 on the petition, after which Daiichi Sankyo will make a decision on the open offer, he said, without elaborating on possible options.

Daiichi Sankyo believes its offer to buy each Zenotech shares for 113.62 rupees is fair, Sasaki said.

Daiichi Sankyo originally said in January it would launch the offer in March. However, the offer has already been delayed twice, first by a prolonged review by the regulators and later by a high court hearing on the petition.

The high court turned down the petition and reversed an earlier injunction suspending the offer. [ID:nSYD516122]

India’s generic drug maker Ranbaxy Laboratories RANB.BO, in which Daiichi Sankyo bought a majority stake last year, has a stake in Zenotech, a smaller generic drug maker.

The purpose of Daiichi Sankyo’s tender offer for Zenotech shares is mainly to meet the Indian law which requires Daiichi Sankyo to hold an open offer for Zenotech shares after buying the controlling stake in Ranbaxy, Daiichi Sankyo said earlier. [ID:nBOM412137]

Shares of Daiichi Sankyo were up 0.3 percent at 1,775 yen, performing mainly in line with the broader pharmaceuticals sector .IPHAM.T which edged up 0.5 percent. (Reporting by Yumiko Nishitani)

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