Sun Pharmaceuticals Industries Limited, commonly known as Sun Pharma, on Monday, June 24, 2024, through a BSE exchange filing announced that the company had successfully completed the merger of Taro Pharmaceutical Industries Limited with its subsidiary. With this move, the company has now acquired all the remaining outstanding ordinary shares of Taro Pharmaceuticals.
With this recent development, Taro Pharmaceuticals has now become a wholly owned subsidiary of Sun Pharma. In addition, it also marked the end of Taro's public trading as its delists from NYSE and transitions to a private company.
Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, said, “We are pleased with the successful completion of Taro merger process. This milestone marks a significant step forward for both organizations, allowing us to effectively leverage each other's strengths and capabilities. Together, we are excited about starting this new chapter and creating a more robust, successful future for the combined entity.”
Taro Pharmaceutical Industries, a company known in the sector related to dermatology, is headquartered in New York | File/ Representative image
Shares performance
The shares of Sun Pharma on Monday at 3:30 pm IST closed at Rs 1,496.40, up by 1.99 per cent
About the merger
Taro Pharmaceutical Industries, a company known in the sector related to dermatology, is headquartered in New York, operates in the USA, Canada, Israel, and Japan and has manufacturing facilities in Brampton, Canada, and Haifa, Israel.
In the financial year 2023-2024, the company reported a net sales of USD 629 million and held USD 1.3 billion in cash as of March March 31, 2024.
The Registrar of Companies in Israel issued a Merger Certificate today, finalising the merger process.
Prior to this, Sun Pharma held a majority stake in Taro (78.5 per cent) and with this merger, Sun Pharma now owns 100 per cent of Taro. The total value of the deal is USD 347.73 million.
Earlier in May 26, 203, the pharma company, Sun Pharma issued a proposal to Taro's Board of Directors which included non binding interest to acquire all outstanding ordinary shares of Taro not already held by Sun Pharma at a purchase price of USD 38 per share.
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