Sun Pharma-Zenotech deal update: Key things to know
Sun Pharma announced that it is going to acquire an 11.28% stake in Zenotech from Daiichi Sankyo. Let us look at the details of the deal.
Sun Pharma: Profile in brief
- Sun Pharma is the 4th largest specialty generic pharmaceutical company in the company. It has global revenues of over $4.5 billion.
- It provides high-quality, affordable medicines trusted by healthcare professionals and patients to more than 100 countries across the globe.
- It is the first Indian Pharma company to realize and embrace the importance of investing in research. It invests up to 7-8% of its global revenues into Research and Development (R&D) every year.
- Zenotech is a subsidiary of Daiichi. It is an India-based pharmaceutical company operating out of Hyderabad.
- The company was formed in 1989, and it is a BSE-listed company engaged in the business of manufacturing and supplying pharmaceutical products in the domestic market.
- The primary objective of the transaction from Sun Pharma's perspective is to consolidate its holding in Zenotech.
- Sun Pharmaceuticals will buy an 11.28% stake in Zenotech by paying Rs 5.32 crore (Rs 7.73 per share) to Daiichi Sankyo.
- After the deal, Sun Pharma's stake in Zenotech will increase from 57.56% to 68.84%.
- The acquisition is expected to complete in 30 days.
- The company said in a statement that no governmental or regulatory approvals are required for the transaction from the acquirer's perspective, except for compliances as mentioned in regulation 10(1)(a)(ii) of SEBI SAST Regulations for exemption.
Sun Pharma shares closed 1.8% lower at Rs 897.90 on BSE this afternoon.