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Business News/ Markets / Stock Markets/  Sun Pharma to buy 100% stake in Taro in all-cash deal; check details
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Sun Pharma to buy 100% stake in Taro in all-cash deal; check details

Sun Pharma News: According to Sun Pharma's filing to the markets, the proposed price reflects a premium of 31.2% over Taro's closing price on May 25, 2023, and a 41.5% premium over Taro's average closing price over the previous 60 days.

Sun Pharma and its affiliates' shares are not included in the proposed transaction. After the transaction is complete, Sun Pharma will own all of the business.Premium
Sun Pharma and its affiliates' shares are not included in the proposed transaction. After the transaction is complete, Sun Pharma will own all of the business.

Through a reverse triangular merger, Sun Pharmaceutical Industries has proposed to buy out all of Taro Pharmaceutical Industries' shares. Sun Pharma will purchase the shares in the all-cash deal for US $38 per ordinary share, which will be paid in full at the completion of the proposed transaction.

According to Sun Pharma's filing to the markets, the proposed price reflects a premium of 31.2% over Taro's closing price on May 25, 2023, and a 41.5% premium over Taro's average closing price over the previous 60 days.

Sun Pharma and its affiliates' shares are not included in the proposed transaction. After the transaction is complete, Sun Pharma will own all of the business.

According to the Israeli Companies Law, 1999 (ICL), the all-cash deal will be completed as a reverse triangular merger, in which Sun Pharma will be required to establish a wholly owned subsidiary or SPV that will engage into a merger agreement with Taro.

As per the indicative proposal, after the acquisition, Taro will become a fully owned subsidiary of Sun Pharma and will no longer trade on the New York Stock Exchange.

"We believe that the Proposed Transaction provides a compelling liquidity opportunity for the Company's shareholders and will benefit the Company and all of its stakeholders," the company said in its filing to the exchanges.

The management and board of directors of Sun Pharma must be consulted for ultimate approval by the company.

The agreement must be fully complied with in order for it to become effective. It also needs approval from all relevant regulatory authorities, including Taro's shareholders, and, if necessary, other parties.

The company has announced its Q4FY23 results on May 26, reporting a consolidated net profit of 1,984 crore, compared to a net loss of 2,277 crore in the corresponding period last year. The pharma major's revenue from operations during the January-March quarter came in at 10,930.6 crore, registering a growth of 15.7%, compared to 9,446.8 crore in the year-ago period.

Sun Pharma Q4 Results: Net profit at 1,984 crore, revenue up 15%, dividend declared

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Published: 27 May 2023, 12:50 PM IST
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