Sun Pharmaceutical's higher buyout offer gets Taro Pharma's board nod

BT Online Bureau   New Delhi     Last Updated: August 13, 2012  | 14:29 IST

Taro Pharmaceutical has agreed to sell the remaining stake of the company to Sun Pharmaceutical and its affiliates for an enhanced price of $39.50 per share.

Earlier in July, Taro's board had rejected Sun Pharma's October 2011 offer to purchase all the outstanding shares of the Israeli firm that would have entailed an outgo of $367.5 million (over Rs 1,810 crore).

This was after the special committee of Taro's board said the offer price was inadequate.

The raised buy-out offer by Sun Pharma is over 61 per cent from it's earlier offer of $24.50 a share.

"The merger agreement was approved by Taro's Board of Directors based upon the recommendations and approvals of the Special Committee of Taro's Board of Directors and the Audit Committee of Taro's Board of Directors," Sun Pharmaceutical Industries said in a statement.

Sun Pharma had acquired a controlling stake in Taro in September 2010.

The merger agreement provides that all shareholders of Taro, other than Sun Pharma and its affiliates, will receive a cash payment of $39.50 per share upon the closure of the merger deal, the company added.

On completion of the merger, Taro would become a privately held company, wholly owned by affiliates of Sun Pharma and its shares would not be traded on the New York Stock Exchange.

The closing of the merger is subject to certain terms and conditions customary for transactions of this type, including the affirmative vote at the shareholder meeting to be convened to approve the merger, Sun Pharmaceutical said.

Sun Pharmaceutical Industries shares were trading 0.96 per cent higher at Rs 682.10 on the Bombay Stock Exchange at 2 pm.

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