Final M&A 2003

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7ppts on M&A wth example of ranbaxy

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Final M&A 2003

  1. 1.
  2. 2. Incentives for Mergers and Acquisitions by Indian companies<br /><ul><li>Build critical mass in terms of marketing, manufacturing and research infrastructure
  3. 3. Establish front end presence
  4. 4. Diversification into new areas
  5. 5. Enhance product, technology and intellectual property portfolio
  6. 6. Catapulting market share</li></li></ul><li>
  7. 7.
  8. 8. About Ranbaxy <br /><ul><li>Incorporated in 1961
  9. 9. Came with IPO in 1973
  10. 10. Global footprint in 49 countries
  11. 11. World-class manufacturing facilities in 11 countries
  12. 12. Serves customers in over 125 countries</li></li></ul><li>
  13. 13.
  14. 14.
  15. 15. <ul><li>Acquired 34.8% promoter stake of Ranbaxy at a price of Rs.737 per share
  16. 16. Transaction value = US$ 4.6 billion (Rs.19780 crores.)</li></ul> (Currency Exchange Rate 1US$ = Rs.43)<br /><ul><li>Financed through a mix of bank debt facilities and existing cash resources of Daiichi Sankyo</li></ul>About the deal<br />
  17. 17. About the deal<br /><ul><li>Total no. of shares acquired : 220.6 million
  18. 18. Through open offer : 92.5 million
  19. 19. From the promoter : 81.9 million
  20. 20. Through the preferential issue </li></ul> of equity shares and warrants 46.2 million <br />
  21. 21. Benefits to Daiichi Sankyo Ltd. <br /><ul><li>Ranbaxy’s:</li></ul> low-cost manufacturing infrastructure and <br /> supply chain strengths<br /><ul><li>Elevate the Daiichi Sankyo’s position from 22 to 15 by market capitalization in the global pharmaceutical market. </li></li></ul><li>Benefits to Ranbaxy Ltd.<br /><ul><li>Ranbaxy gains access to Daiichi Sankyo’s research and development expertise to advance its branded drugs business.
  22. 22. The deal frees up its debt and imparts more flexibility into its growth plans.</li></li></ul><li>SYNERGY<br />
  23. 23. Long-term value for all stakeholders<br /><ul><li>A complementary business combination
  24. 24. An expanded global reach
  25. 25. Strong growth potential
  26. 26. Cost competitiveness</li></li></ul><li>
  27. 27.
  28. 28. REFERENCES<br />Research report by Daiichi Sankyo Ltd.<br />Economic Times dated 12th June, 2008.<br />The Financial Express dated 21st Oct.,2008.<br />

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