Sun Pharma offers to acquire Israel's Taro Pharmaceutical, offers 31 percent premium

In a major business expansion announcement, Sun Pharmaceutical Industries announced that it has proposed to fully acquire Israel-based Taro Pharmaceutical Industries through a reverse triangular merger.
The Mumbai-headquartered pharmaceutical company has said that it has issued a letter to the Taro Board with the proposal. The offering contains an interest provision to purchase all outstanding ordinary shares for US$38 per share in cash. Let us tell you that Sun Pharma currently holds a 78.48% stake in Taro Pharmaceutical Industries.
Sun Pharma plans to complete the transaction in a reverse triangular merger under the Israeli Companies Law, 1999, Sun Pharma said in a regulatory filing.
Sun Pharma has proposed to make this acquisition a cash deal. Sun Pharma's offer is at a 31 percent premium to Taro Pharma's closing price on Friday, May 25. Upon completion of the deal, Taro Pharma will become a subsidiary of Sun Pharma and will be delisted from the New York Stock Exchange.
Sun Pharma, one of the country's largest pharma companies, released its fourth-quarter results for FY23 on May 26. The company earned a net profit of Rs 1,984.47 crore during this period. Let us tell you that the company had a loss of Rs 2,277.25 crore in this quarter last year.
Releasing the results of the last quarter, the company said that its revenue has increased by 12 percent year-on-year to Rs 10,726 crore. After the profit made by the company in the March quarter, the company also announced a dividend of Rs 4 per share to its investors.