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Daiichi exits Sun Pharma in India’s largest bulk deal

This article was posted on Apr 22, 2015 and is filed under Market News

Japanese firm raises $3.2 billion; Goldman Sachs, Singapore govt, Aranda lead stake buy; Sun stock dips 9%

In the largest bulk deal on Dalal Street, Japanese pharmaceuticals giant Daiichi Sankyo on Tuesday sold its entire 8.9 per cent stake in Sun Pharmaceutical Industries for $3.2 billion (about Rs 20,000 crore), at an average price of Rs 931.60 a share to a clutch of foreign institutional investors (FIIs) led by Goldman Sachs, the government of Singapore and Aranda Investments.

Daiichi sold 215 million shares at the lower end of the band of Rs 932 a share (the upper end was Rs 1,043 a share) of the book building issue, which opened Monday evening. As a result, Sun Pharma shares dropped nine per cent, their steepest fall in six years, to close at Rs 951.60 apiece on Tuesday. The shares were sold at an 11 per cent discount to Monday’s closing price, which explains the fall in the stock. Daiichi’s stock, on the other hand, closed 4.4 per cent higher on the Tokyo stock exchange.

Goldman Sachs, the banker for the transaction, was also one of the top buyers, with Rs 4,765 crore of investment from its Singapore subsidiary, stock exchange data showed. Aranda Investments Mauritius, a Temasek subsidiary, invested Rs 1,875 crore in the issue, while the government of Singapore (Government Investment Company) invested Rs 1,173 crore.

Sun Pharma said its promoter Dilip Shanghvi did not buy any shares in Tuesday’s transaction. Till the time of going to print, the stock exchange did not give data on all the buyers.

For more visit: Business Standard

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