BUSINESS

Andhra HC order not to impact merger with Ranbaxy: Sun Pharma

Source:PTI
May 27, 2014 18:32 IST

Drug major Sun Pharma on Tuesday said its $4-billion merger with Ranbaxy Laboratories will remain on track and the lifting of the stay order issued by the Andhra Pradesh High Court will have no impact on the deal.

Last week, the court had vacated the status quo order it had issued earlier on the merger process between Sun Pharma and Ranbaxy.

"There was no material impact of the earlier court order on the process of completion of merger of Ranbaxy Laboratories Ltd with our company and therefore the vacation of the said order will also not have any material impact on the process of completion of merger of Ranbaxy Laboratories Ltd with our company," Sun Pharma said in a filing to the BSE.

The company further said the vacation of the said order

would not have any material impact on the company's "present or future operations or its profitability or financials".

The court had earlier issued interim orders to maintain status quo with regard to the merger following a petition in this regard by two investors requesting the court to restrain the BSE and the NSE from giving any clearance to the scheme of amalgamation or merger between Sun Pharma and Ranbaxy.

The petitioners alleged that there was heavy trading of Ranbaxy stock before the merger with Sun Pharma was announced on April 6.

Last month, Sun Pharma had announced to acquire Ranbaxy Laboratories in an all stock transaction with a total equity value of $3.2 billion, along with debt of $800 million taking the overall deal value to $4 billion.

Sun Pharma shares today closed at Rs 592.25 apiece on the BSE, up 0.06 per cent from its previous close.

Source: PTI
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