Ranbaxy Laboratories Ltd said it has agreed to increase its stake in Zenotech Laboratories Ltd to 45 pct from 7 pct, by paying about 2.14 bln rupees or 160 rupees per share.
In a filing with the Bombay (OTCBB:BBAO) Stock Exchange, Ranbaxy said the stake hike will be via a purchase of shares from existing promoters and a preferential offer to Ranbaxy from Zenotech.
Ranbaxy added this will trigger a mandatory open offer by Ranbaxy to other shareholders of Zenotech, at a price of 160 rupees per share or as determined by Indian regulator SEBI's rules.
Post the offer, the existing promoter group of Zenotech will have a 25 pct stake in its expanded equity capital.
Zenotech has received three Indian approvals for oncology biopharmaceuticals. It has a pipeline of a further seven biopharmaceutical products in different stages, all developed in-house, Ranbaxy added.(CNN)