Sun Pharma to acquire Taro, to pay $367m for 33.5% stake

Drug firm Sun Pharma today said it has proposed to fully acquire Taro Pharmaceuticals with an offer to purchase all the outstanding shares of the Israeli firm that would entail an outgo of USD 367.5 million (over Rs 1,810 crore).

Sun Pharma, which holds 66.5% stake in Taro, said it is proposing to acquire 15 million outstanding shares at a price of USD 24.50 per share.

In a filing to the BSE, Sun Pharma said it has written a letter to the Board of Directors of Taro on the issue.

Sun Pharma has proposed a per share consideration of USD 24.50 in cash representing a 25.96% premium over the most recent closing price of Taro common stock, it added.

"This offer is subject to the approval of Taro Board and such other authorities as may be required and subject to completion of necessary compliances/formalities as may be required," it added.

Sun Pharma had acquired a controlling stake in Taro in September, 2010 after nearly four years of legal wrangling.

After the acquisition, Sun Pharma Chairman Dilip Shanghvi took over as the Chairman of the Tel-Aviv based drug firm.

Shares of Sun Pharmaceutical Industries today closed at Rs 467.55 on BSE, down 0.98% from its previous close.