Taro Pharmaceuticals, which has been in a tussle with Mumbai-based Sun Pharma over its complete buyout, will evaluate the latter’s latest non-binding cash offer of $24.50 per share for all of the issued and outstanding shares of the Israeli company. Currently, Sun Pharma owns 66 per cent in Tel Aviv-based Taro.
On October 18 last year, Sun Pharma announced a cash offer of $24.50 per share for the remaining Taro shares. Taro said in a statement here that a special committee of its board of directors, formed to evaluate the offer from the Mumbai-based firm, “continues to evaluate” that non-binding offer.
It was after about three years of legal battle that Sun completed the acquisition of controlling stake in Taro — in September last year. In March 2007, Sun had signed a $454-million deal for a controlling stake in Taro.
While offering $24.40 a share on October 18, Sun said its offer represents a 25.96 per cent premium over the most recent closing of the Israeli firm’s common stock.
From the offer, Sun Pharma is estimated to invest around $350-$370 million for around 15 million outstanding shares in Taro to become 100 per cent owners.
Taro noted the special committee “continues to work diligently together” with its financial and legal advisors so as to evaluate the terms of the Sun Pharma offer. Also, it “is committed to protecting the interests” of Taro’s minority shareholders.
A Sun Pharma spokesperson said the company did not want to comment on the matter. The special committee recognises its primary objective is to maximise value for the minority shareholders of Taro. It will take all steps necessary to ensure this objective is achieved, the Taro statement added.
