BIG BUYOUT IN THE PHARMA INDUSTRY

In what comes as the biggest pharmaceutical deal of the present time, Sun Pharmaceutical has agreed to buy generic drugmaker Ranbaxy Laboratories for USD 3.2 billion. The deal comes against the backdrop of a slew of sanctions against Ranbaxy by the USFDA due to concerns about manufacturing processes at its India plants.

CONSOLIDATED CURING

Sun Pharmaceutical Industries has agreed to buy generic drugmaker Ranbaxy Laboratories for USD 3.2 billion. Th e all-share transaction, which is the biggest pharmaceutical sector deal in the Asia-Pacifi c region this year, will create the world’s fi ft h-largest maker of generic drugs. Th e acquisition comes as the pace of consolidation increases in a market that’s primed for growth in the US and emerging markets and could be worth USD 335 billion globally by 2017.

Th e deal comes against the backdrop of a slew of sanctions against Ranbaxy by the USFDA due to concerns about manufacturing processes at its India plants. Sun Pharma’s strong sales base in the US, along with India supply chain management that has been tight enough to meet FDA standards in most cases and a good record in managing troubled acquisitions, made the fi rm an attractive buyer for Daiichi Sankyo.

Th e USD 4 billion merger deal of Ranbaxy with Sun Pharmaceuticals is expected to close by the end of 2014, Japanese drug maker Daiichi Sankyo, which holds majority stake in the former, said. According to the company’s estimates the merger deal would get approval from Indian securities exchanges by June end. Further, the company expects the extraordinary meetings of shareholders at Sun Pharmaceuticals and Ranbaxy at the end of August, followed by the completion of merger ‘with approval from high courts in India and other regulatory agencies’. As per their agreement, Ranbaxy shareholders will get 0.8 share of Sun Pharmaceuticals for each share of Ranbaxy, representing an implied value of `457 for each Ranbaxy share.

ORDERS FLOWING IN 

Engineering major Punj Llyod has won Rs 3254 crore contract for constructing infrastructure facilities in a Libyan city. Th e project involves design and construction of the storm and sewer network, water network, telecommunication and power distribution network, natural gas network, street lighting and road works including landscaping of parks and green areas.

 BAILOUT RINGING LOUD 

Debt laden, Suzlon Energy in a latest development has signed a loan agreement worth Euro 850 million with a consortium of banks for funding its working capital requirements and expansion plans. Suzlon Group’s German subsidiary Senvion SE signed an agreement for a loan of Euro 850 million (over Rs 7000 crore) with consortium of banks for a 3 year period.

HOME FINANCED WELL

 Gruh Finance on has reported a 16.7 per cent growth in fourth quarter (January- March). Th e company’s net profi t stands at Rs 73.6 crore as against Rs 63.06 crore in a year ago period. Net interest income of the company grew 23.8 per cent to Rs 106.49 crore from `86 crore during the same period. For the year ended FY14, the housing fi nance company has reported net profi t of Rs 176.96 crore, a growth of 21 per cent compared to previous year. Th e board of directors of the company has recommended payment of dividend for the fi nancial year 2013-14 of Rs 3 per share. Th e board also recommended the issue of bonus shares in the ratio of 1 equity share for every 1 equity share held.