Sun Pharma to buy out Israel’s Taro for $571 million
13 Aug 2012
Sun Pharmaceutical Industries, India's largest drugmaker by market value, has gained full control of Israeli dermatology company Taro Pharmaceutical Industries Ltd after sweetening its buyout offer for the remaining stake from $367 million to $571 million.
The Haifa Bay, Israel-based company yesterday said it has agreed to be taken private by Sun Pharma, after having rejected a $24.50-per-share bid last month.
Taro's three minority shareholders were seeking a higher premium arguing that the company's sales have improved over the years.
Grand Slam Asset Management was reportedly seeking around $48 per share, while Raging Capital wanted $106.91, and Guardian Point Capita had valued Taro's share at $75-100.
Under the terms of the new offer, Mumbai-based Sun Pharma, which already owns 66.3 per cent of Taro, will pay $39.50 per share or $571 million for the remaining stake held by Taro's minority shareholders.
Taro's stock closed at $41.10 on Friday on the New York Stock Exchange.
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