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Sun Pharma plans to delist Caraco, offers share buyback

Sun Pharma plans to delist Caraco, offers share buyback
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First Published: Sat, Dec 04 2010. 03 30 PM IST
Updated: Sun, Dec 05 2010. 09 55 PM IST
Mumbai: India’s largest drug maker by value Sun Pharmaceutical Industries Ltd said on Saturday that is planning to delist its US-based subsidiary Caraco Pharmaceutical Laboratories Ltd by acquiring the remaining 24% stake in that company for $4.75 a share.
In a notice to Stock Exchange (BSE) it said that the offer for the remaining shares would be at a 5% premium over the most recent closing price of $4.54. And this equity purchase will be through either the parent company itself or by its affiliates. Sun Pharma’s total investment to acquire the outstanding shares of Caraco will be around $48.76 million.
In 2009, Caraco had been subject to inspection by the FDA, which had resulted in seizure of stock and closure of its manufacturing plants. The company had also retrenched several employees following this. The FDA compliance procedures are currently on at the manufacturing site, and the company hopes the issue will be resolved in due course. Share price of Sun Pharma was down 1.18% to close at Rs 447.20 on Friday on the BSE.
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First Published: Sat, Dec 04 2010. 03 30 PM IST
More Topics: Sun Pharma | Caraco Pharma Labs | Stake | BSE | FDA |