Sun Pharma to buy out Ranbaxy for $4 billion

Sun Pharma to buy out Ranbaxy for $4 billion

36New Delhi, April 7 (IANS) India’s largest drugmaker Sun Pharma will buy out Ranbaxy Laboratories for $4 billion, the two companies said Monday.

The combined entity will create the world’s fifth largest specialty generic pharma company.

According to a joint statement issued by the two companies, Sun Pharma will acquire 100 percent of Ranbaxy in an all-stock transaction.

Under these agreements, Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy.

This exchange ratio represents an implied value of Rs.457 for each Ranbaxy share, a premium of 18 percent to Ranbaxy’s 30-day volume-weighted average share price and a premium of 24.3 percent to Ranbaxy’s 60-day volume-weighted average share price, in each case, as of the close of business on April 4, 2014.

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