Sun Pharmaceutical has agreed to buy Ranbaxy Laboratories in an all-stock deal that values the rival Indian company at $3.2 billion, potentially creating the world's fifth-largest generic drug maker.
Under the terms of the deal, Ranbaxy shareholders will receive 0.8 Sun Pharma shares for each Ranbaxy share. Ranbaxy shareholders are expected to own about 14% of Sun Pharma once the deal is concluded.
The exchange ratio implies a value of Rs457 for each Ranbaxy share, which is a 0.5% discount to the April 4 closing price. That said, Ranbaxy’s share price has risen sharply in recent weeks ahead of the announcement, so the deal is also...
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