Bigger and Better - Bigger and Better Experts says Sun Pharma's acquisition of Ranbaxy will be positive for the former's shareholders Rahul Oberoi\/Money

Bigger and Better - Bigger and Better Experts says Sun...

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Bigger and Better Experts says Sun Pharma's acquisition of Ranbaxy will be positive for the former's shareholders Rahul Oberoi/Money Today Edition: May 2014 RELATED Sun Pharma expects Ranbaxy to be profitable in short term What will it take for Sun Pharma to turn Ranbaxy around? To increase presence in global and domestic markets, Sun Pharmaceutical Industries is buying Ranbaxy Laboratories in a shareswap deal. Ranbaxy shareholders will get four shares of Sun Pharma for every five shares held by them. The exchange ratio represents an implied value of Rs 457 for each Ranbaxy share. The deal will lead to 16.4% dilution in the equity capital of Sun Pharma. This is because its total equity value is $3.2 billion and the deal size is $4 billion (valuing Ranbaxy at 2.2 times last 12 months sales). The deal is expected to be completed by December 2014. Experts say the deal will be good for Sun Pharma. Praful Bohra, senior research analyst, Nirmal
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