Business Daily from THE HINDU group of publications
Tuesday, Jul 11, 2006


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Mergers & Acquisitions
Markets - Preferential Allotments
Get Latest BSE Quote
Ranbaxy set to acquire equity stake in Zenotech

Our Bureau

Zenotech board to meet on July 17

Hyderabad , July 10

Ranbaxy Laboratories Ltd (RLL) is all set to acquire a sizeable equity stake in Zenotech Laboratories Ltd (ZLL), the Hyderabad-based pharma company that is developing generic cancer drugs for the former to market in the US and Canadian markets.

The Zenotech board is scheduled to meet on July 17 to consider a proposal to issue equity shares in favour of Ranbaxy on a preferential offer basis.

Though the ZLL management is tight-lipped over the size and price of the preferential offer, sources told Business Line that the offer could result in Ranbaxy acquiring around 10 per cent equity stake in Zenotech.

Sources said the minimum price of Zenotech shares work out to around Rs 80 per share if the last six months average price on the bourses was calculated. Zenotech is likely to offer the equity at a significant premium to the minimum price, sources said, adding that it would enable the company raise Rs 20-30 crore.

Last month, Ranbaxy's wholly-owned subsidiary, Ranbaxy Pharmaceuticals Inc , had signed an agreement with Zenotech under which Zenotech would develop, submit for regulatory approval and manufacture a total of 11 oncology products to be co-marketed in the US and Canadian markets.

Apart from a proposal to consider preferential offer to Ranbaxy, the Zenotech board would also consider grant of options to directors and employees under Zenotech employee stock option scheme.

In a communiqué to stock exchanges, Zenotech said its board would also consider allotment of shares to the erstwhile shareholders of Credence Pharmaceuticals Ltd and Hemarus Healthcare Pvt Ltd following the scheme of amalgamation entered between Credence Pharmaceuticals and Hemarus Healthcare, which was approved by the Andhra Pradesh High Court vide order dated May 2.

More Stories on : Mergers & Acquisitions | Preferential Allotments | Pharmaceuticals | Ranbaxy Laboratories Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Prajay Engineers allots shares


BHEL bags Tata Power contract
DS Const bags NHAI project
Kohl's to step up sourcing from Celebrity Fashions
Transfer of Royal Enfield unit: Eicher gets board nod
VBC to consider revamp, merger
Stokvis Tapes acquires Prostick Adhesives
Ranbaxy set to acquire equity stake in Zenotech
AITUC to back Vizag steel plant capacity expansion
Suryalakshmi expansion project takes off
Tata group may suspend projects in Bangladesh
Indo Asian enters Sri Lankan market
Reliance's FLAG Telecom bags China Netcom deal
Samtel, HAL to form joint venture co
SpiceJet, Galileo sign pact to offer low fares
Toyota Kirloskar launches rural water project
Blackstone invests $50 m in Emcure
Seabuckthorn Indage plans home, personal care foray
M&M Fin plans to vend insurance, MF products
Opto Circuits arm gets European Mark approval
Keltron reiterates demand for OTS
ONGC starts negotiations with Exxon Mobil consortium
ONGC expects marginal rise in onshore crude output
Radio City targets 30% share in 2 years
JB Chem intensifies focus on 3 segments
Fiat plans 1.1 litre, CNG variants of Palio


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line