The open offer by Daiichi Sankyo to Zenotech Laboratories’ shareholders will not open today, as scheduled. The Chennai High Court (Madurai Bench) has granted an interim injunction in connect with the offer, said ICICI Securities, the manager to the offer, in a filing to the Bombay Stock Exchange.
The dispute relates to the offer price to be paid by Daiichi to Zenotech’s minority shareholders. The company which makes biopharmaceutical generic drugs claims that Daiichi had agreed to make the open offer at Rs 160 but had backed out later. Ranbaxy held a stake of 46.9% in Zenotech Laboratories with Jayaram Chigurupati being the co-promoter with a 26% stake. When Daiichi Sankyo acquired a majority stake in Ranbaxy, it also gained control over Zenotech.
Apparently, at the time Daiichi had planned to buy out the co-promoter’s stake in Ranbaxy too. But later it seems to have developed cold feet and decided to only make an open offer as required by law. It made an open offer at a price of Rs 114 a share.
Zenotech’s has been making losses in the past few years, with a loss of Rs 10.88 crore in the nine months ended December’08 compared to Rs 8 crore, in the corresponding previous period.
The notice issued by ICICI Securities, deferring the offer.
A copy of the order issued by the Madras High Court (Madurai Bench).
A press release on Zenotech’s website gives details of emails exchanged on this issue.
Zenotech’s complaint to Sebi.
A story in Business World on the issue.