TOKYO: Japan's third-largest drugmaker Daiichi Sankyo Co said on Wednesday its open offer to buy up to 20 per cent of Ranbaxy Laboratories Ltd was oversubscribed.
But payment for the stock purchase has been delayed until an unspecified time from an original deadline of Sept. 19 due to a delay in India's regulatory approval process.
Daiichi Sankyo agreed in June to buy the 34.8 per cent stake held by Ranbaxy's founding family, and to make an open offer for a further 20 percent of Ranbaxy shares, as per Indian regulations, in a deal worth up to 198 billion rupees ($4.3 billion).
Shares of Ranbaxy plunged last week after the United States banned dozens of its drugs because of procedural violations in manufacturing at Ranbaxy's plants in India.
Investors had tendered more than 92.5 million Ranbaxy shares between Aug. 16 and Sept. 4, Daiichi Sankyo said in a statement but did not reveal the exact amount.
An Indian government panel has not held a meeting to review the tender offer on schedule, and this has caused the delay in the approval process, a Daiichi Sankyo spokesman said.
Daiichi Sankyo's shares were up 1.4 percent at 2,915 yen compared to a 1.2 percent decline for the Nikkei benchmark average.
But payment for the stock purchase has been delayed until an unspecified time from an original deadline of Sept. 19 due to a delay in India's regulatory approval process.
Daiichi Sankyo agreed in June to buy the 34.8 per cent stake held by Ranbaxy's founding family, and to make an open offer for a further 20 percent of Ranbaxy shares, as per Indian regulations, in a deal worth up to 198 billion rupees ($4.3 billion).
Shares of Ranbaxy plunged last week after the United States banned dozens of its drugs because of procedural violations in manufacturing at Ranbaxy's plants in India.
Investors had tendered more than 92.5 million Ranbaxy shares between Aug. 16 and Sept. 4, Daiichi Sankyo said in a statement but did not reveal the exact amount.
An Indian government panel has not held a meeting to review the tender offer on schedule, and this has caused the delay in the approval process, a Daiichi Sankyo spokesman said.
Daiichi Sankyo's shares were up 1.4 percent at 2,915 yen compared to a 1.2 percent decline for the Nikkei benchmark average.
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