Daiichi to exit Sun Pharma

Japanese pharma giant, Daiichi Sankyo selling its stake worth Rs 22,610 crore in Sun Pharma on Tuesday as part of its strategy to exit India and Sun Pharmaceutical promoter Dilip Shangvi is expected to pick up part of the share on sale and increase his stake in the company.

Daiichi Sankyo owns 9 per cent stake in Sun Pharmaceuticals and bankers say the Japanese company will sell its stake worth Rs 22,610 crore as on Tuesday via block deals in the stock markets to book profits on its investment in India.

In the last three months, Sun Pharma stock is up 20% thus giving a good window for the Japanese company to exit the company, said a banker. Goldman Sachs is the banker to the transaction and the shares will be sold in the band of Rs.932 to Rs 1,043 a share. 

Daiichi acquired the stake in Sun Pharma after the Dilip Shanghvi agreed to merge Ranbaxy with itself in an all-stock deal. The Japanese company has already hired banks to sell its stake and the sale will take place in tranches, bankers said.  An email sent to Daiichi on Monday did not elicit any response till going to press. 

While a slew of institutional investors are expected to lap up the stake, the Sun Pharma promoters are also expected to buy shares from Daiichi to increase their stake in the company which fell to around 52% after the Ranbaxy merger from 64%. While Sun Pharma declined to comment, insiders say the block deal book will be launched as early as tomorrow.