Israel Supreme Court lifts injunction on Sun's acquisition of Taro
08 Sep 2010
The Supreme Court of Israel has dismissed an appeal by Taro Pharmaceutical Industries Ltd against an earlier order of the Tel Aviv district court that allowed Sun Pharma's acquisition of a controlling stake in the Israeli company.
The Indian pharamceutical company, which acquired a 36 per cent stake in Taro from its promoters, the Levitts, said it is now ready to enforce rights under option agreement to purchase Levitts' controlling shares.
The Tel-Aviv district court had held that the Israeli special tender offer rules are not applicable to the tender offer by Sun's subsidiary, Alkaloida Chemical Company Exclusive Group Ltd.
The Israeli Supreme Court has ruled that the company could go ahead with its offer and also awarded expenses to Sun.
Sun Pharma subsidiary, which holds a 36 per cent stake in Taro, had offered to purchase all outstanding ordinary shares of Taro at $7.75 net per ordinary share in cash.
The Supreme Court also lifted an injunction to permit the closing of Sun Pharma's offer for Taro and the offer is now set to expire on 14 September 2010, Sun Pharma said in a release.