NEW DELHI:

Japanese MNC Daiichi Sankyo has announced an open offer to buy up to 20% in Ranbaxy Laboratories.

The offer for the company's shareholders will open on August 8. This is close on the heels of Ranbaxy promoter and CEO Malvinder Singh announcing his decision to sell the entire 34.8% family stake to the Japanese company at Rs 737 per share.

If the offer is fully accepted, Daiichi's stake will rise to 58.09%. Daiichi said in a public notice on Monday it would send offer letters to shareholders whose name appear in the books on June 27.

The last date for a competitive bid for Ranbaxy is July 7, the notice says. As per Indian takeover regulations, a counter bid has to be made within 21 days of the original public announcement.

On completion of the acquisition, the board of directors of the company would be re-constituted to comprise 10 members, of which a combination four independent and non-independent directors would be nominated by Ranbaxy, while the rest six would be named by Daiichi Sankyo.

"Malvinder Mohan Singh will remain the chief executive officer and managing director of Ranbaxy Labs and will also become the chairman of the board, " the announcement stated.

The offer is scheduled to open on August 8 and close on August 27, it added. ICICI Securities is the manager to the offer on behalf of Daiichi Sankyo.