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Final M&A 2003
 

Final M&A 2003

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7ppts on M&A wth example of ranbaxy

7ppts on M&A wth example of ranbaxy

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    Final M&A 2003 Final M&A 2003 Presentation Transcript

    • Incentives for Mergers and Acquisitions by Indian companies
      • Build critical mass in terms of marketing, manufacturing and research infrastructure
      • Establish front end presence
      • Diversification into new areas
      • Enhance product, technology and intellectual property portfolio
      • Catapulting market share
    • About Ranbaxy
      • Incorporated in 1961
      • Came with IPO in 1973
      • Global footprint in 49 countries
      • World-class manufacturing facilities in 11 countries
      • Serves customers in over 125 countries
      • Acquired 34.8% promoter stake of Ranbaxy at a price of Rs.737 per share
      • Transaction value = US$ 4.6 billion (Rs.19780 crores.)
      (Currency Exchange Rate 1US$ = Rs.43)
      • Financed through a mix of bank debt facilities and existing cash resources of Daiichi Sankyo
      About the deal
    • About the deal
      • Total no. of shares acquired : 220.6 million
      • Through open offer : 92.5 million
      • From the promoter : 81.9 million
      • Through the preferential issue
      of equity shares and warrants 46.2 million
    • Benefits to Daiichi Sankyo Ltd.
      • Ranbaxy’s:
      low-cost manufacturing infrastructure and
      supply chain strengths
      • Elevate the Daiichi Sankyo’s position from 22 to 15 by market capitalization in the global pharmaceutical market.
    • Benefits to Ranbaxy Ltd.
      • Ranbaxy gains access to Daiichi Sankyo’s research and development expertise to advance its branded drugs business.
      • The deal frees up its debt and imparts more flexibility into its growth plans.
    • SYNERGY
    • Long-term value for all stakeholders
      • A complementary business combination
      • An expanded global reach
      • Strong growth potential
      • Cost competitiveness
    • REFERENCES
      Research report by Daiichi Sankyo Ltd.
      Economic Times dated 12th June, 2008.
      The Financial Express dated 21st Oct.,2008.