NEW DELHI: Sun Pharmaceutical Industries on Thursday said it will acquire the remaining 21.52 per cent stake in Israel-based Taro Pharmaceutical Industries for Rs 2,891.76 crore, enabling the merger of the two entities.
The acquisition of 8,086,818 shares (21.52 per cent) will be at the cost of Rs 2,891.76 crore, Sun Pharma said. The Mumbai-based drug major has agreed to acquire all of the outstanding ordinary shares of Taro for $43 (Rs 3,575.9) per share in cash without interest, as per the definitive merger agreement. Sun Pharma already owns a 78.48 per cent stake in Taro. “Over the years, with Sun Pharma’s strategic interventions, Taro has remained a key player in the generic dermatology market in a challenging environment,” Sun Pharma Managing Director Dilip Shanghvi said in a statement.
After 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, he added.
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.
“Taro is committed to delivering high-quality products to our patients and customers around the world. This merger will further enable us to compete effectively in our products and markets,” Taro CEO Uday Baldota said.
The merger agreement was unanimously recommended by the Special Committee, which was formed by Taro’s Board of Directors to consider Sun Pharma’s proposal.
Upon receiving the unanimous recommendation of the Special Committee, and following unanimous approval by Taro’s Audit Committee, Taro’s Board and the Board of Directors of Sun Pharma unanimously approved the definitive merger agreement.