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Sun Pharmaceutical Industries proposes to fully acquire Taro Pharmaceutical Industries through reverse triangular merger

Purchase price represents premium of 31.2 per cent over Taro’s closing price on May 25, 2023, 41.5 per cent premium over Taro’s average closing price in last 60 days

PTI New Delhi Published 28.05.23, 04:10 AM
Representational image

Representational image

Sun Pharmaceutical Industries on Saturday said it has proposed to fully acquire Israel-based Taro Pharmaceutical Industries through a reverse triangular merger.

The Mumbai-based drug major said it has issued a letter to the Taro board with a proposal containing a non-binding indication of interest to acquire all of the outstanding ordinary shares for a purchase price of $38 per ordinary share in cash.


Sun Pharma currently owns a 78.48 per cent stake in Taro.

“We envisage the proposed transaction to be consummated in the form of a reverse triangular merger under the Israeli Companies Law, 1999 and practice,” Sun Pharma said in a regulatory filing.

The purchase price represents a premium of 31.2 per cent over Taro’s closing price on May 25, 2023, a 41.5 per cent premium over Taro’s average closing price in the last 60 days and a compelling liquidity opportunity for Taro’s shareholders, it added.

Under the indicative proposal, post the acquisition, Taro will become a wholly-owned subsidiary of Sun Pharma and will be delisted from NYSE.

Sun Pharmaceutical on Friday reported a 29.6 per cent rise in fourth-quarter profit, as it benefited from lower expenses and higher sales of specialty drugs.

The company’s consolidated profit before exceptional items and tax rose to Rs 24.11 billion ($291.7 million) for the quarter ended March 31, it said in an exchange filing.

M&M feels tractor sales will be robust

Mahindra and Mahindra, which saw a growth of 15 per cent in its tractor sales in FY23, is confident of continued growth in the next financial year, albeit a low single-digit growth, despite threats of El Nino and its effects on the tractor demand.

The company said El Nino has had a low correlation with tractor sales growth, adding that the industry grew 8 per cent in El Nino years.

Rajesh Jejurikar, executive director, farm equipment sector, said: “Average tractor industry growth in El Nino affected years is 8 per cent. Only during two drought years (2002-03 and 2015-16) during the last 50-year period, did the industry have negative growth.”

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