Shares in India’s Ranbaxy Laboratories rose to their highest in 3-½ years on Wednesday after the Nikkei business daily said Japan’s Daiichi Sankyo wanted buy more than 50 percent of the Indian firm in a deal worth up to $3.7 billion.
The paper said Daiichi Sankyo was planning to launch a bid worth 300 billion yen to 400 billion yen ($2.8 billion-$3.7 billion) for the stake in India’s top drugmaker by sales and an announcement was expected later in the day.
Ranbaxy chief executive Malvinder Singh is holding a news conference at 1:30 p.m. A company spokesman declined comment on the stake sale reports.
At 10:25 a.m., the stock was trading 1.4 percent up at 568.50 rupees in a Mumbai market that was up 1.3 percent. The stock rose as much as 5.6 percent to 591.90 rupees, its highest since December 2004. It rose 6.5 percent on Tuesday, when its market value was $4.9 billion.
Ranbaxy founders and their associates own 34.8 percent of the company, according to stock exchange data, including a 4.8 percent stake held by Oscar Investments.
Oscar Investments, which has Singh as one of its shareholders, said in a notice to the stock exchange on Tuesday its board would meet on Wednesday to "consider and approve the scheme of de-merger of investment and trading business of the company."
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