Final M&A 2003
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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.