Hurdles removed for Ranbaxy, Sun Pharma merger
Hurdles were removed for Ranbaxy and Sun Pharma amalgamation by vacating the earlier restraint order of the Andhra Pradesh High Court here today. The court had earlier issued interim stay orders. SEBI is currently probing the allegations of insider trading.
The independent investors of Ranbaxy who made allegations against Sun Pharma were now saying that they were happy to know about the Sebi probe into the issue. A petition in this regard was earlier filed by two investors requesting the High 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. They requested the court to direct market regulator SEBI to investigate the insider trading of Ranbaxy shares and take appropriate action against Sun Pharma and Silver Street Developers.
The SEBI had yesterday informed the court that an investigation is currently going on into the allegations of insider trading.
The Mumbai-based Sun Pharma had on April 6 announced that it would fully acquire Ranbaxy in an all-stock transaction with a total equity value of USD 3.2 billion, along with debt of $800 million.
(Posted on 24-05-2014)