Supplier News Breaks Archives
Sun Pharma to take Taro private
August 13th, 2012
MUMBAI, India, and HAWTHORNE, N.Y. – Sun Pharmaceutical Industries Ltd. and Taro Pharmaceutical Industries Ltd. have entered into a merger agreement in which Sun Pharma will buy out Taro for $571 million.
The pharmaceutical companies said Sunday evening that, under the deal, all shareholders of Taro other than Sun Pharma and its affiliates will receive a cash payment of $39.50 per share upon the closing of the merger.
Sun Pharma and its affiliates together own about 66% of the outstanding Taro ordinary shares and 100% of Taro's founders shares, accounting for approximately 77.5% of the outstanding voting power in Taro.
With the completion of the buyout agreement, Taro will become a privately held company and be wholly owned by affiliates of Sun Pharma. Taro's ordinary shares also will no longer be traded on the New York Stock Exchange.
The merger agreement, which is subject to certain terms and conditions, has been approved by Taro's board.
Last month, a special committee of Taro's board announced that it had rejected an unsolicited buyout proposal by Sun Pharma. That bid was for $24.50 per share, which Taro called "inadequate and not in the best interests of Taro's minority shareholders."