Malvinder Singh, third generation CEO of Ranbaxy Laboratories, has revealed why he decided to sell the business in which his family held a 35% stake. "It was emotional," he said, "but you cannot hold a company from future advancement because your shareholding will come down."
Singh announced last week that the firm founded by his grandfather in 1961 was being sold to Daiichi Sankyo Company, one of the largest pharmaceutical companies in Japan, for up to $4.6 billion. This represented a premium of 31.4% on the pre-announcement price.
"It takes Ranbaxy to a whole new level," said Singh, who will continue to lead the company as its CEO and MD while additionally assuming the position of chairman of the board, upon closure.
Singh also revealed how he believed his late father Parvinder would have done exactly the same thing in selling the business, but that his grandfather, Bhai Mohan, would probably have kept it due to his preference for family control.
Ranbaxy – in which Malvinder's brother, Shivinder, is also a director – is India's largest pharmaceutical company. It produces generic medicines for the global marketplace and has revenues of $1.6 billion.
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