The board of Israel-based Taro Pharmaceutical has agreed to sell the remaining stakes of the company to Sun Pharmaceutical and its affiliates for an enhanced price of $39.50 per share.
"The merger agreement was approved by Taro's Board of Directors based upon the recommendations and approvals of the Special Committee of Taro's Board of Directors and the Audit Committee of Taro's Board of Directors," Sun Pharmaceutical Industries said in a statement.
The merger agreement provides that all shareholders of Taro other than Sun Pharma and its affiliates will receive a cash payment of $39.50 per share upon the closure of the merger deal, it added.
The raised buy-out offer by Sun Pharma is over 61% from it's earlier offer of $24.50 a share.
On completion of the merger, Taro would become a privately held company, wholly owned by affiliates of Sun Pharma and its shares would not be tradedon the New York Stock Exchange, Sun Pharma said.
Earlier in last month, Taro's board had rejected the Sun Pharma's October 18, 2011 offer to purchase all the outstanding shares of the Israeli firm that would have entailed an outgo of $367.5 million (over Rs 1,810 crore).
This was after the special committee of Taro's board said the offer price was inadequate.
Sun Pharma had acquired a controlling stake in Taro in September, 2010.
The closing of the merger is subject to certain terms and conditions customary for transactions of this type, including the affirmative vote at the shareholder meeting to be convened to approve the merger, Sun Pharmaceutical said.
Shares of Sun Pharmaceutical Industries were today trading at Rs 683.50 per scrip in the afternoon trade on BSE, up 1.17% from its previous
close.
