Japan's Daiichi completely exits Sun Pharma, sells its entire holding for about Rs 20,420 crore

New Delhi: Japanese drug maker Daiichi Sankyo has sold its entire holding in Sun Pharmaceutical Industries for an estimated Rs 20,420 crore, which it received following the merger of Ranbaxy into the Indian pharma major.

In a statement on Tuesday, Daiichi said: "The sale of Sun Pharma shares has been completed." The company further said it has sold its entire holding of 21,49,69,058 shares in Sun Pharmaceutical. At the average share price of about Rs 950, the value of its shares would be Rs 20,420 crore."

On Monday, Daiichi Sankyo Company Ltd had announced its decision to sell "the entire or part of its holdings of Sun Pharmaceutical shares." It further said: "Daiichi Sankyo will make an announcement concerning the effect of any gain or loss on the sale of Sun Pharma shares when results of operations for the fiscal year ending in March 2015 are announced."

Daiichi Sankyo said its board had approved selling a part or entire 9 per cent holding in Sun Pharma.

Daiichi got around 9 per cent stake in Sun Pharma following the merger of Ranbaxy with the Indian pharma major.

"The board of directors of Daiichi Sankyo Company Ltd approved a resolution on April 20 to sell entire or part of its holding of Sun Pharmaceutical Industries Ltd shares," the Japanese firm said in a statement.

Sun Pharma had in March announced completion of merger of Ranbaxy with itself, almost a year after announcing the $4-billion deal.

As part of the deal, Ranbaxy shareholders were to receive 0.8 Sun Pharma shares for every Ranbaxy share they held.

Daiichi Sankyo, which had acquired a majority stake in Ranbaxy in 2008 for around Rs 22,000 crore, held 63.4 per cent in the Gurgaon-based firm at the time of the merger.

"From the perspective of the improvement of corporate value, Daiichi Sankyo has performed a review of the Sun Pharma shares and reached a conclusion to sell the shares entirely or partially," it said.

The merger with Ranbaxy has fortified Sun Pharma's position as the world's fifth largest specialty generic pharma firm and the top-ranking domestic one with a significant lead in the market share.