Daiichi Sankyo moves further to cut legacy Ranbaxy ties

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Tokyo-based Daiichi Sankyo has further cut legacy ties to Ranbaxy Laboratories in a mutual agreement with Sun Pharmaceutical Industries to terminate transaction agreements connected to the firm.

Mumbai-based Sun bought Ranbaxy in an all-stock deal in 2014 worth nearly $4 billion that allowed Daiichi to eventually exit fully from Ranbaxy, capping a turbulent majority stake holding it acquired in 2008.

NDTV Profit said the transaction agreements signed in 2013 between Daiichi and Sun Pharmaceutical were part of an "umbrella arrangement" that allowed for business units in various countries to transact.

"There is no material impact of such termination on either standalone or consolidated operations/ financial operations of our company," Sun reported in a statement cited by NDTV Profit. "Additionally, the said termination agreement does not apply to, or have an impact upon, other business relationship that the parties to the said termination agreement may have in force."

The termination agreement follows a report this week that Daiichi Sankyo asked an Indian court to make sure former Ranbaxy owners Malvinder and Shivinder Singh set aside enough capital to meet an arbitration award that could reach $525 million.

Earlier this month, the brothers were ordered by an arbitration panel to pay Daiichi Sankyo in a case that alleged the siblings hid key information while negotiating the sale of the firm in 2008.

The Business Standard had earlier reported that the brothers replied to the filing in the Delhi High Court that they would indeed keep assets of INR35 billion on hand to pay the award should an appeal in process fail.

- here's the story from NDTV Profit