Sun Pharma exit may net Daiichi $3.6bn - Japanese drugmaker Daiichi San- Navbharat Times Photodhamal

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Japanese drugmaker Daiichi Sankyo is close to exiting India, ending a bitter 7-year run that saw it face regulatory challenges in several countries because of its ownership of Ranbaxy Laboratories, which it had bought from the Delhi-based Singh family in 2008.

In This Pic : Sun Pharma exit may net Daiichi $3.6bn

Pic Courtesy : BCCL - Non Copyright

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Daiichi is planning to sell the nearly 9% stake it currently holds in Indian pharma major Sun Pharmaceuticals, worth about Rs 22,300 crore (about $3.6 billion) at Monday's close of market, through block deals on Tuesday. If completed successfully, this will be the largest block deal in Indian history.

In This Pic : Sun Pharma exit may net Daiichi $3.6bn

Pic Courtesy : BCCL - Non Copyright

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Earlier this month, Sun Pharma announced the close of its buyout of Ranbaxy in a stock-swap deal which resulted into Daiichi holding 8.9% in India's largest drugmaker by sales.

In This Pic : Sun Pharma exit may net Daiichi $3.6bn

Pic Courtesy : BCCL - Non Copyright

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The closure of the deal will mean a cash loss of at least $600 million for Daiichi over seven years. In 2008, Daiichi bought over the promoters' stake in Ranbaxy for $4.2 billion while now it is set to get about $3.6 billion by selling its stake in Sun Pharma.

Pic Courtesy : BCCL - Non Copyright

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According to the term sheet for the deal, Sun Pharma shares are being offered in a band of Rs 930-1,040, a discount of as much as 11% at the lower end of the price band to the stock's Monday close at Rs 1,044. The book for the block deal is being offered through an accelerated book building process.

In This Pic : Sun Pharma exit may net Daiichi $3.6bn