Sun Pharma to terminate transaction pacts

The Dollar Business Bureau

The Mumbai-based pharma major, Sun Pharmaceutical Industries has announced that they are terminating the umbrella pact and the transaction agreement signed with Daiichi Sankyo and its overseas subsidiaries. The termination comes as a result of the divestment of Ranbaxy by the Japanese firm.

On May 26th, 2016, the companies Daiichi Sankyo (Thailand) Ltd, Daiichi Sankyo, Ranbaxy (Netherlands) BV, Ranbaxy (Thailand) Company Ltd and Sun Pharmaceutical Industries Ltd have entered into a termination agreement.

Sun Pharma in a regulatory filing said, “the parties have terminated the umbrella agreement as well as the transaction agreements executed between Daiichi Sankyo Company Ltd, Daiichi Sankyo (Thailand) Ltd Ranbaxy, Ranbaxy (Netherlands) BV, Ranbaxy Unichem Company Ltd, Ranbaxy (Thailand) Company Ltd due to divestment of Ranbaxy by Daiichi Sankyo Company Ltd.”

Sun Pharma announced the acquisition of the rival Ranbaxy in April 2014. It was an all-stock transaction of $4 billion which included a debt of $800 million.

The company also said that there is no material impact for the termination on either consolidated or stand-alone operations or the financial operation of the company.

Daiichi sold its entire stake of around 9 percent last year in Sun Pharmaceutical industry for over Rs.20,420 crores. This amount was received by the company after the merger of Ranbaxy to the India Firma after ending its intense seven years in the country.

The Japanese firms which had rushed into the Indian market by buying a majority of the stake in the Ranbaxy Laboratory in 2008 for Rs.22,000 crore, sold over 21 crores worth of share in Sun Pharma.