Zenotech case: SC upholds Daiichi plea versus SAT order

In January 2008, Ranbaxy Laboratories had acquired 46.85% stake in Zenotech at Rs 160 per share. This was followed by an open offer at the same price. Twenty weeks later, Daiichi acquired Ranbaxy. Since the acquisition was over 15%, they had to make an open offer for Zenotech. But the pricing was at Rs 113.60 per share as against the earlier offer of Rs 160 per share, which was Ranbaxy original acquisition price.

Dr Jayaram, who holds 25.76% stake in the company, had been fighting this case for a long time. He approached SAT for a revision of the open offer price as he felt that Rs 160 per share is the right price for the shareholders and promoters going forward.

The SAT order was in favour of Zenotech’s shareholders at Rs 160 per share.

Daiichi then moved the apex court post the SAT order. The Supreme Court has upheld Daiichi’s plea against SAT. This means that the open offer price of Rs 160 per share is not payable. The open offer price by Daiichi will stand at Rs 113.60 per share.

Post this ruling, the Zenotech share fell 8.37% to Rs 104.