Sun Pharma to acquire Israel firm for $454 million
Sun Pharmaceutical Industries Ltd., has signed a definitive agreement to acquire the Israeli firm Taro Pharmaceutical Industries ltd in an all-cash deal of $454 million. Th
is acquisition will be financed with internal accruals and proceeds from it ealier $350 million FCCB. The deal values Taro's equity at $230 million or $7.75 per share which is at a 27% premium to its May 18,2007 closing price of $6.10.
is acquisition will be financed with internal accruals and proceeds from it ealier $350 million FCCB. The deal values Taro's equity at $230 million or $7.75 per share which is at a 27% premium to its May 18,2007 closing price of $6.10.Sun Pharma will also refinance $224 million in debt of Taro. In addition, it will provide interim financing to the extent of $45 million to provide liquidity for Taro. This is Sun Pharma's 14th acquisition.
In the words of Dilip Shangvi, Chairman and Managing Director of Sun Pharma, "We intend to build on Taro's expertise in dermatology and paediatrics, along with speciality and generic pharmaceuticals and over the counter (OTC) products. With the addition of 170 scientists to our team, we look forward to increasing the number of product filings of higher complexity".
Taro is a multinational generic manufacturer with subsidiaries, manufacturing and products across the US, Israel and North America which represents more than 90% of Taro's sales. Taro, headquarted in Haifa, Israel, operates through three entities, namely Taro Pharmaceutical Industries Ltd, Taro Pharmaceuticals Inc., Canada and Taro Pharmaceuticals USA Inc. Sun Pharma is a leading speciality pharmaceuticals company with revenues Rs. 2,357 crore, PAT Rs. 774 crore and market cap of over $4.8 billion for the financial ending March 31, 2007.
Meanwhile the minority share holders who own nine percent of Taro's equity namely Franklin Advisors, Inc., and Templeton Assets Management Ltd., have filed a motion in Tel Aviv district court for a temporary injunction to prevent Taro from entering into any transaction which might result in dicrimination against minority public share holders.
Source : Deccan Chronicle
The brief financials of Sun Pharmaceutical industries Ltd for the last three years (source: Myiris.com)
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1 comments:
Pharmaceutical Industries' acquisition of Taro Pharmaceutical Industries for $454 million is a strategic move to expand its expertise in various pharmaceutical sectors, including dermatology and pediatrics. This acquisition also brings 170 additional scientists to their team, enabling a higher number of product filings. However, it faces challenges from minority shareholders seeking to prevent any actions that may discriminate against them.
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