Incentives for Mergers and Acquisitions by Indian companies

• Build critical mass in terms of marketing, manufacturing and research infrastructure

• Establish front end presence

• Diversification into new areas

• Enhance product, technology and intellectual property portfolio

• Catapulting market share

About Ranbaxy

• Incorporated in 1961

• Came with IPO in 1973

• Global footprint in 49 countries

• World-class manufacturing facilities in 11 countries

• Serves customers in over 125 countries

• Acquired 34.8% promoter stake of Ranbaxy at a price of Rs.737 per share

• Transaction value = US$ 4.6 billion (Rs.19780 crores.)

(Currency Exchange Rate 1US$ = Rs.43)• Financed through a mix of bank debt facilities and

existing cash resources of Daiichi Sankyo

About the deal

About the deal

• Total no. of shares acquired : 220.6 million

• Through open offer : 92.5 million

• From the promoter : 81.9 million

• Through the preferential issue of equity shares and warrants 46.2 million

Benefits to Daiichi Sankyo Ltd.

• Ranbaxy’s: low-cost manufacturing infrastructure and

supply chain strengths

• Elevate the Daiichi Sankyo’s position from 22 to 15 by market capitalization in the global pharmaceutical market.

Benefits to Ranbaxy Ltd.

• Ranbaxy gains access to Daiichi Sankyo’s research and development expertise to advance its branded drugs business.

• The deal frees up its debt and imparts more flexibility into its growth plans.

SYNERGY

Long-term value for all stakeholders

• A complementary business combination

• An expanded global reach

• Strong growth potential

• Cost competitiveness

REFERENCES

• Research report by Daiichi Sankyo Ltd.• Economic Times dated 12th June, 2008.• The Financial Express dated 21st Oct.,2008.