Sun Pharma proposes to acquire Israel-based Taro Pharmaceutical Industries

Sun Pharmaceuticals said Saturday that it has proposed the full acquisition of Israel-based Taro Pharmaceuticals through a reverse triangle merger.

The Mumbai-based pharmaceutical giant said it had issued a letter to Taro’s board with a proposal containing a non-binding indication of interest in acquiring all outstanding common shares at a purchase price of $38 per common share in cash.

Sun Pharma currently owns 78.48 percent of Taro’s shares.

“We envisage that the proposed transaction will be completed in the form of a reverse three-way merger in accordance with the Israeli Companies Law of 1999 and in practice,” Sun Pharma said in a regulatory statement.

He added that the purchase price represented a premium of 31.2 percent over Taro’s closing price on May 25, 2023, a premium of 41.5 percent over the average closing price of Taro in the last 60 days and a compelling liquidity opportunity for Taro shareholders.

Under the indicative proposal, after the 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 published: May 27, 2023 | 5:38 p.m ist