Sun Pharma, Daiichi terminate transaction pacts
Sun Pharmaceutical Industries on Thursday said the umbrella pact and transcation agreements signed with Daiichi Sankyo and its overseas subsidiaries have been terminated due to divestment of Ranbaxy by the Japanese firm.
"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 said in a regulatory filing.
Daiichi Sankyo, Daiichi Sankyo (Thailand) Ltd, Sun Pharmaceutical Industries Ltd, Ranbaxy (Netherlands) BV and Ranbaxy (Thailand) Company Ltd entered into a termination agreement on May 26, 2016, it added. The agreements were executed between Daiichi and Ranbaxy, including their overseas subsidiaries, on June 12, 2013.
In April 2014, Sun Pharma had announced the acquisition of troubled rival Ranbaxy in an all-stock transaction worth $4 billion that includes $800 million debt. The parties agreed that the umbrella agreement as well as the executed transaction agreements, will be terminated with effect as of the closing date, the Mumbai-based drug major said.
"There is no material impact of such termination on either standalone or consolidated operations/ financial operations of our company. Additionally, the said termination agreement does not apply to, or have an impact upon, other business relationship that the parties to the said termination agreement may have in force," it added.
Last year Daiichi sold its entire stake of around 9% in Sun Pharmaceutical Industries for over Rs 20,420 crore, which it received after merger of Ranbaxy in the Indian firm, ending its seven years of tumultuous stay in the country.
The Japanese firm, which had forayed into the growing Indian pharmaceutical market by buying a majority stake in Ranbaxy Laboratories in 2008 for Rs 22,000 crore, sold over 21 crore shares in Sun Pharma. Sun Pharma shares on Thursday ended at Rs 780.05 apiece on the BSE, down 0.87% from previous close.