Shares in Sun Pharmaceutical Industries rallied to an all-time high on Wednesday after the top valued Indian drugmaker said it had completed acquisition of a controlling stake in Taro Pharmaceutical Industries Ltd.
The purchase of Taro after a protracted legal battle will help Sun expand its generic offerings in the United States, Canada and Israel, the company said. Mumbai-based Sun has paid about $39 million for the founding families' 12.7 percent stake, taking its shareholding in Taro to 48.7 percent at a total investment of $144 million, Sun's spokeswoman said.
Sun and its units had entered into a definitive agreement in 2007 to acquire Taro in a $454 million deal, that included debt and valued Taro's equity at $230 million. But Israel-based Taro terminated the deal citing low valuation. Earlier this month, it won a favourable Israel court ruling that allowed Sun to exercise an option to buy shares owned by Taro's founding shareholders, the Levitt and Moros families, at $7.75 each.
The purchase of Taro after a protracted legal battle will help Sun expand its generic offerings in the United States, Canada and Israel, the company said. Mumbai-based Sun has paid about $39 million for the founding families' 12.7 percent stake, taking its shareholding in Taro to 48.7 percent at a total investment of $144 million, Sun's spokeswoman said.
Sun and its units had entered into a definitive agreement in 2007 to acquire Taro in a $454 million deal, that included debt and valued Taro's equity at $230 million. But Israel-based Taro terminated the deal citing low valuation. Earlier this month, it won a favourable Israel court ruling that allowed Sun to exercise an option to buy shares owned by Taro's founding shareholders, the Levitt and Moros families, at $7.75 each.
No comments:
Post a Comment