Sun Pharma offers to acquire Israel's Taro Pharmaceutical, offers 31 percent premium
Sun Pharma has proposed to fully acquire Taro Pharmaceutical Industries of Israel. Upon completion of the deal, Taro Pharmaceutical will become a subsidiary of Sun Pharma and will subsequently be delisted from the NYSE.
In a major business expansion announcement, Sun Pharmaceutical Industries announced that it has proposed to fully acquire Israel-based Taro Pharmaceutical Industries through a reverse triangular merger.
The Mumbai-headquartered pharmaceutical company has said that it has issued a letter to the Taro Board with the proposal. The offering contains an interest provision to purchase all outstanding ordinary shares for US$38 per share in cash. Let us tell you that Sun Pharma currently holds a 78.48% stake in Taro Pharmaceutical Industries.
Sun Pharma plans to complete the transaction in a reverse triangular merger under the Israeli Companies Law, 1999, Sun Pharma said in a regulatory filing.
Sun Pharma has proposed to make this acquisition a cash deal. Sun Pharma's offer is at a 31 percent premium to Taro Pharma's closing price on Friday, May 25. Upon completion of the deal, Taro Pharma will become a subsidiary of Sun Pharma and will be delisted from the New York Stock Exchange.
Sun Pharma, one of the country's largest pharma companies, released its fourth-quarter results for FY23 on May 26. The company earned a net profit of Rs 1,984.47 crore during this period. Let us tell you that the company had a loss of Rs 2,277.25 crore in this quarter last year.
Releasing the results of the last quarter, the company said that its revenue has increased by 12 percent year-on-year to Rs 10,726 crore. After the profit made by the company in the March quarter, the company also announced a dividend of Rs 4 per share to its investors.