Caraco Pharmaceutical Laboratories today said it has entered into a merger agreement with Sun Pharmaceutical Industries, which has increased its offer price per share by 10.52%.
"The merger agreement provides that all shareholders of Caraco, other than Sun Pharma and Sun Global, will receive a cash payment of $5.25 per share upon the closing of the transaction," Caraco said in a statement on its website.
The company had earlier announced that Sun Pharma and Sun Global had proposed to delist the NYSE listed firm, under which Sun Pharma, Sun Global and/or one or more of their affiliates would acquire all of the outstanding shares of Caraco common stock for a per share consideration of $4.75 cash.
Sun Pharma and its subsidiary Sun Global collectively own 75.8% of Caraco common stock.
"Upon completion of the transaction, Caraco will become a privately held company and its common stock will no longer be traded on the NYSE Amex," it said.
Caraco entered into the merger agreement based upon the recommendation and approval of the Independent Committee of Caraco's Board of Directors and the approval of the Board of Directors, the statement said.
The closing of the transaction is subject to regulatory and shareholders approval, it added
Detroit-based Caraco develops, markets and distributes generic pharmaceuticals to the nation's largest wholesalers, distributors, drugstore chains and managed care providers.
