Sun Pharmaceutical Industries said on Saturday that it has proposed to fully acquire Israel-based Taro Pharmaceutical Industries through a reverse triangle merger.
The Mumbai-based drug major said it has sent a letter to the Taro board with a proposal containing a non-binding indication of interest to acquire all outstanding common shares for a purchase price of $38 per common share in cash. .
Sun Pharma currently owns a 78.48 percent stake in Taro.
“We anticipate that the proposed transaction will be consummated in the form of a reverse triangular merger under the Israel Companies Law of 1999 and practice,” Sun Pharma said in a regulatory filing.
The purchase price represents a 31.2% premium to Taro’s closing price on May 25, 2023, a 41.5% premium to Taro’s average closing price over the last 60 days, and an attractive opportunity liquidity for Taro shareholders, he added.
Under the indicative proposal, post-acquisition, Taro will become a wholly owned subsidiary of Sun Pharma and will be delisted from the New York Stock Exchange.
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First posted: May 27, 2023 | 17:38 IS
