Source: Economic Times

Source: VCCircle.com

The key highlights of the Ranbaxy- Daiichi deal

1) Daiichi Sankyo will acquire the entire shareholding of the Sellers in Ranbaxy and further seek to acquire the majority of the voting capital of Ranbaxy at a price of Rs 737 per share with the total transaction value expected to be between $3.4 to $4.6 billion (currency exchange rate: US$1=Rs43). On the post closing basis, the transaction would value Ranbaxy at $8.5 billion.

2) Daiichi Sankyo is expected to acquire the majority equity stake in Ranbaxy by a combination of (i) purchase of shares held by the Sellers, (ii) preferential allotment of equity shares, (iii) an open offer to the public shareholders for 20% of Ranbaxy’s shares, as per Indian regulations, and (iv) Daiichi Sankyo’s exercise of a portion or all of the share warrants to be issued on a preferential basis. All the shares/warrants will be acquired/issued at a price of Rs 737 per share.

3) The acquisition is expected to be completed by the end of March, 2009. Upon completion of the transaction, Ranbaxy is expected to become a subsidiary of Daiichi Sankyo.

4) The deal will be financed through a mix of bank debt facilities and existing cash resources of Daiichi Sankyo.

5) This purchase price represents a premium of 53.5% to Ranbaxy’s average daily closing price on the National Stock Exchange for the three months ending on June 10, 2008 and 31.4% to such closing price on June 10, 2008.

6) It is anticipated that the transaction will be accretive to Daiichi Sankyo’s EPS and Operating income before amortization of goodwill in the fiscal year ending March 31, 2010 (FY2009).

Shahrukh Khan seems to have gotten the better of established businessmen like Mallya and Ambani over here. [...] the KnightRiders look to have turned in a neat profit of Rs 11 Crores! And they didn’t even qualify for the semis! Even the low-cost Rajasthan Royals, who have the added benefit of having a winning streak are not going to make a profit![...]Mallya has spent exorbitantly, with the cheerleaders and laser shows and what not, and has no sponsors or co-sponsors for the Royal Challengers team. That is going to mean a staggering loss of 43 crores this year!

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Web18 Software Solutions Pvt. Ltd, the Internet arm of Network18 Media and Investments Ltd is set to launch a horizontal portal, said two people familiar with the development (according to Livemint).

A horizontal portal refers to an Internet portal site that offers a broad range of content and services. Exampels could be Rediff, Yahoo!, MSN, AOL etc. 

 Web18 had launched Josh18 sometime back – that portal comes close to being a horizontal player but it lacks things like travel booking and email; 2 essentials I would say when it comes to classifying a portal as horizontal.

 Web18 has 15 stand alone sites in various field of interest such as cricket, finance, shopping, travel, news, jobs, technology etc. and thus it makes perfect sense to integrate all these sites into one complete portal. Incidentally, Web 18’s top portal MoneyControl has seen traffic falling drastically over the last few days. The result is a confluence of their 3 top portals – CricketNext, IBNLive, and MoneyControl. By the way – is Alexa biased against regional sites or does Josh18 really linger below English content sites? Anyone with information on that?
Incidentally when a group is launching an array of services, I think its better if they have one mother brand which can then be used to nurture all the other brands. It becomes a logistical and marketing nightmare to harness 16 different brands with different identities. There are no spill over effect, no positive externalities, all of them need separate budgets etc. We saw in automotive how GM succumbed to Toyota because of issues related to managing multiple brands – all of which were not successful. In the Internet Space too, Google offers tons of products and applications and the ‘G’ before the brand adds that force. They follow a more or less generic branding strategy. Web18 would have benefited if it did more of that. It would be interesting to see what the portal is called.

T.R. Madan Mohan, a managing partner at Browne and Mohan had another interesting point to make – “Rediff is valued at $200 million (Rs846 crore), while a vertical like Naukri (job portal) is valued at four times that. Sify has one-tenth the value of travel portal Makemytrip.”