New Delhi: Five days after the Israel-based Taro Pharmaceutical termed the open offer launched by Sun Pharmaceuticals as ‘sham’, the Mumbai-based firm on 15 July extended the expiry date of the open offer to 2 September.
Sun Pharma said its subsidiary, Alkalodia Chemical Exclusive Group has extended the expiry date of the tender offer for purchase of all outstanding ordinary shares of Taro Pharmaceuticals.
The offer was previously scheduled to expire on Monday, 28 July.
“The extension was recommended by a Tel-Aviv court to allow the court to rule on the merits of the litigation commenced against Alkalodia...regarding the applicability of the special tender offer rules under the Israeli law,” Sun Pharma said in a statement.
Such recommendations for the extension was agreed upon by all parties to the litigation, the company said.
Last month, Sun Pharma through its subsidiary had launched a tender offer at $7.75 a share to acquire all outstanding ordinary shares of Taro, including the founders’ shares.
Sun claimed that Alkalodia exercised its option under the agreement to acquire all the shares held by controlling shareholders of Taro, under the option agreement signed with the company in last year’s $454-million merger.
Taro has unilaterally terminated the merger agreement citing undervaluation, which Sun Pharma challenged at the New York Supreme Court. However, the Israeli company had termed the tender offer by Sun Pharma as a ‘sham’.
“It is a ‘sham’ offer, because we believe Sun knows that it will not be accepted by the shareholders,” Taro said to its shareholders.