Sun Pharmaceutical Industries Limited has entered into a definitive merger agreement with Taro Pharmaceutical Industries Ltd. Sun Pharma is currently Taro’s controlling shareholder. As part of the merger agreement, Sun will acquire all of the outstanding ordinary shares of Taro. other than the shares already held by Sun Pharma or its affiliates, for US$43.00 per share in cash without interest.
Upon completion of the merger, expected to close in the first half of 2024, Taro will become a privately held company and its shares will no longer be listed on the NYSE.
“Over the years, with Sun Pharma’s strategic interventions, Taro has remained a key player in the generic dermatology market in a challenging environment. Post completion of the merger, the combined entity will firmly move forward, leveraging its global strengths and capabilities to better serve the needs of patients and healthcare professionals,” says Dilip Shanghvi, Managing Director of Sun Pharma.
The US$43.00 per share purchase price represents a 48% premium over the closing price of US$28.97 per share on May 25, 2023, the last trading day before Sun Pharma first submitted its non-binding proposal to Taro, and a premium of 58% to the volume-weighted average price of the shares during the 60 days prior to and including May 25, 2023. The purchase price also represents a 13% increase over the initial proposed purchase price of US$38.00 per share as proposed on May 26, 2023.
The merger is subject to various closing conditions. Details are available at taro.com.
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