New Delhi: Ranbaxy Laboratories will cease to exist as a company after completion of the $4 billion merger with Sun Pharmaceuticals, although its brands will be kept alive in over 100 markets.
“The Ranbaxy entity will be merged into Sun Pharma and Sun Pharma will be the surviving entity post-merger,” a Sun Pharma spokesperson said.
On Ranbaxy’s brands, he said: “Ranbaxy has branded generics in more than 100 markets. We plan to keep these brands alive in most markets...The brand Ranbaxy itself has a rich heritage and value. We would like to preserve that.”
Sun Pharma said on April 7 that it would fully acquire Ranbaxy, which was incorporated in 1961 and went public in 1973. It will offer 0.8 per cent share of Sun Pharma for each Ranbaxy share, representing an implied value of Rs 457 per Ranbaxy share.
After approval by regulators and shareholders, a record date will be set for the share swap, after which the Ranbaxy stock will not be traded on the exchanges. According to Daiichi Sankyo of Japan, which holds a 63.41 per cent stake in Ranbaxy, the merger is expected to close by the end of 2014.
