Sun Pharma completes Taro merger, acquires remaining shares for $43 each

Following the merger, Taro is now a private company and wholly owned by Sun Pharma.

Sun Pharmaceutical Industries Limited, on June 24, announced the successful completion of the merger of Taro Pharmaceutical Industries Limited with its subsidiary. As part of this merger, Sun Pharma has acquired all outstanding ordinary shares of Taro other than the shares already held by Sun Pharma or its affiliates, the company noted in a statement.

Following the merger, Taro is now a private company and wholly owned by Sun Pharma. Sun Pharma has been the majority shareholder of Taro since 2010.

The Mumbai-based drug major has agreed to acquire all of the outstanding ordinary shares of Taro for $43 per share in cash without interest, as per the definitive merger agreement. The acquisition of 8,086,818 shares (21.52 percent) will be at the cost of Rs 2,891.76 crore, Sun Pharma stated.

Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, said, “We are pleased with the successful completion of the Taro merger process. This milestone marks a significant step forward for both organizations, allowing us to effectively leverage each other's strengths and capabilities. Together, we are excited about starting this new chapter and creating a more robust, successful future for the combined entity.”

Sun Pharma said the $43 per share purchase price represents a 48 percent premium over the closing price of $28.97 per share on May 25, 2023, the last trading day before Sun Pharma first submitted its non-binding proposal to Taro.

On June 24, Sun Pharma shares closed 1.99 percent up at Rs 1,496.40 apiece on the BSE.

Sun Pharmaceutical Industries reported a consolidated net profit of Rs 2,654.58 crore in the fourth quarter ended March. The company posted a consolidated net profit of Rs 1,984.47 crore in the fourth quarter of the previous fiscal.