Sun Pharma To Buy Remaining Stake In Taro For Rs 2,891 Crore
The company will acquire the remaining 21.52% outstanding shares of Taro for $43 per share, totaling $347.73 million, or Rs 2,891.76 crore, in a cash deal.
Sun Pharmaceutical Industries Ltd. and Taro Pharmaceutical Industries Ltd. have entered into a definitive merger agreement.
In this agreement, Sun Pharmaceutical, which owns 78.48% of Taro currently, has agreed to acquire all outstanding ordinary shares of Taro, other than the shares already held by it.
The company will acquire the remaining 21.52% outstanding shares of Taro for $43 per share, totaling $347.73 million, or Rs 2,891.76 crore, in a cash deal.
The merger agreement was unanimously recommended by the Special Committee, formed by Taro’s board of directors, to consider Sun Pharma’s proposal.
"Following a comprehensive evaluation of the proposal with assistance from independent financial and legal advisors, the Special Committee determined that the merger agreement and the per-share merger consideration are fair and in the best interests of Taro and its minority shareholders," the filing said.
Upon completion of the merger, currently expected to close in the first half of 2024, Taro will become a privately held company, and its shares will no longer be listed on the NYSE.
"Over the years, with Sun Pharma’s strategic interventions, Taro has remained a key player in the generic dermatology market in a challenging environment. Post-completion of the merger, the combined entity will firmly move forward, leveraging its global strengths and capabilities to better serve the needs of patients and healthcare professionals," said Dilip Shanghvi, managing director of Sun Pharma.
