Ranbaxy Laboratories has proposed to acquire from the existing non-promoter shareholders of the Zenotech Laboratories Ltd up to 68.93 lakh fully paid-up equity shares representing 20 per cent of the expanded equity capital at a price of Rs 160 for each fully paid-up equity share. The open offer will commence from November 19, 2007 and will be close on December 8, 2007. Rabo India Securities Pvt Ltd will act as manager to the offer, on behalf of Ranbaxy. After completion of the acquisition, Ranbaxy will hold 44.59 per cent of the expanded equity of the Zenotech.
Zenotech Laboratories, a Hyderabad based speciality generic injectables company with expertise in the area of bio-technology, is primarily serves niche therapy areas like oncology and anaesthesiology. It has R&D facilities in India and the US. The company turned the corner during the year ended March 2007 and earned a net profit of Rs 3.62 crore as against a net loss of Rs 0.74 crore in the previous year. Its sales improved marginally to Rs 13.02 crore from Rs 12.37 crore.
The acquisition of Zenotech will provide a strong platform in the high growth markets of biologics and speciality injectables including oncology, the fastest growing therapy area in the global markets.