Sun Pharma to acquire Taro Pharma for USD 454 mn

Mumbai, May 21 (UNI) Sun Pharmaceutical Industries Ltd, together with its subsidiaries, has signed definitive agreements to acquire Taro Pharmaceutical Industries Ltd, multinational generic manufacturer with established subsidiaries, manufacturing and products across the US, Israel and Canada.

The all-cash deal is subject to shareholder approval and requisite regulatory clearances, the company disclosed to the Bombay Stock Exchange (BSE) today.

The Company intends to fund this USD 454 million acquisition with internal accruals and proceeds from its earlier USD 350 million FCCB.

This deal values Taro's equity at 230 million, or USD 7.75 per share which is at a 27 per cent premium to its May 18 closing price of USD 6.10.

The Company will also refinance USD 224 million in net debt of Taro. In addition, to provide immediate liquidity for Taro, the Company will provide interim financing to the extent of USD 45 million.

Commenting on the develpment, Company Chairman&Managing Director Dilip Shanghvi said, ''We look forward to working with Taro and its employees going forward. This is a good opportunity for Sun and Taro to work together to create increasing value and add a complimentary multinational organisation to Sun's business.'' Taro operates mainly through three entities: Taro Pharmaceutical Industries Ltd, or Taro Israel, and two of its subsidiaries, Taro Pharmaceuticals Inc, or Taro Canada, and Taro USA. Taro, headquartered in Haifa, Israel, was established in 1959 and has been listed since 1961 in the US.

UNI