Sun Pharma said it will buy the outstanding shares in its Israeli subsidiary, Taro Pharma at $43 per share, for roughly $348 million. The total cost of acquisition constituting 21.52% of the total outstanding shares of Taro amounts to around $348 million (Rs 2,892 crore), Sun Pharma said in a filing with stock exchanges.
The Indian drugmaker, which currently owns about 78.5% stake in Taro, had offered to buy its remaining stake for $38 per share in May.
Upon completion of the merger which is 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, the companies said. After almost 17 years of negotiations and discussions, this deal marks the conclusion of Sun Pharma’s efforts to secure full ownership of the US-listed generic drug manufacturer, predominantly operating in the United States and Canada.
Dilip Shanghvi, managing director of Sun Pharma, said, “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.”
Uday Baldota, CEO of Taro, said, “Taro is committed to delivering high-quality products to our patients and customers around the world. This merger will further enable us compete effectively in our products and markets.
The Indian drugmaker, which currently owns about 78.5% stake in Taro, had offered to buy its remaining stake for $38 per share in May.
Upon completion of the merger which is 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, the companies said. After almost 17 years of negotiations and discussions, this deal marks the conclusion of Sun Pharma’s efforts to secure full ownership of the US-listed generic drug manufacturer, predominantly operating in the United States and Canada.
Dilip Shanghvi, managing director of Sun Pharma, said, “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.”
Uday Baldota, CEO of Taro, said, “Taro is committed to delivering high-quality products to our patients and customers around the world. This merger will further enable us compete effectively in our products and markets.