Japan's Daiichi Sankyo to sell up to $3.6 billion Sun Pharma stake
By Abhishek Vishnoi
MUMBAI (Reuters) - Japan's Daiichi Sankyo Company Ltd (4568.T: Quote) is selling shares worth up to $3.6 billion in Indian drugmaker Sun Pharmaceutical Industries Ltd (SUN.NS: Quote), setting it on course to retreat from India after a rollercoaster seven years.
Daiichi Sankyo bought India's Ranbaxy Laboratories (RANB.NS: Quote) in 2008, betting on growing global demand for generic drugs, but found itself saddled with a company battling complaints and sanctions from the U.S. Food and Drug Administration (FDA).
Mumbai-headquartered Sun Pharma, India's largest drugmaker by sales, agreed to buy Ranbaxy from Daiichi Sankyo for $3.2 billion in April 2014 . As part of that deal, Daiichi Sankyo got a 8.9 percent stake in the new Sun Pharma.
Daiichi Sankyo kickstarted the sale of the Sun Pharma stake on Monday, according to a person directly involved in the deal and a marketing term sheet seen by Reuters, through accelerated book building.
The sale comes after Sun Pharma completed the acquisition of Ranbaxy last month.
In an exchange filing, the Japanese drugmaker said its board had approved the sale of all or part of the Sun Pharma stake. It gave no reason for the sale, but added the existing business partnership with Sun Pharma would remain unchanged.
"From the perspective of the improvement of corporate value, Daiichi Sankyo has performed a review of the Sun Pharma shares and reached a conclusion to sell the shares entirely or partially," it said.
Daiichi Sankyo said it would disclose the financial details related to the Sun Pharma stake sale when it announces results for the fiscal year that ended on March 31. Continued...