Sun raises offer 23% for Taro s residual stake
Sun Pharmaceuticals raised its offer by as much as 23 per cent to buy the residual stake of Taro Pharmaceutical Industries in a bid to gain a controlling stake in the Israeli drug maker.
Sun Pharma, which owns 36 per cent of Taro, today disclosed two options to buy the remaining stake in the New York Stock Exchange listed drug maker. The revised offers come after the Israeli Supreme Court, on December 8, directed the companies to explore an out-of-court settlement within 30 days.
For the first option, Sun offered to buy shares at $9.5 each instead of the earlier $7.75 per share. Sun Pharma will have to pay $14 million more than its earlier proposal on this basis.
For the second option, Sun offered $9 per ordinary share for all shareholders other than Taro Chairman Barrie Levitt and $8.5 per ordinary share for the five million-odd shares held by the promoter group. If this is accepted, Sun’s payout will be slightly lower than the first option.
Taro, however, is yet to respond to the revised offer. “Our proposal given to Taro has been designed keeping in mind primarily the interests of minority shareholders. Taro is yet to formally respond to our proposals and neither has it made another alternative proposals,†a Sun Pharma company spokesperson said.
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