Sun Pharmaceutical Industries Limited has successfully finalized the merger of Taro Pharmaceutical Industries Limited with its subsidiary, acquiring all outstanding ordinary shares of Taro for $43 per share in cash. This move effectively transitions Taro into a private company wholly owned by Sun Pharma.
Sun Pharma, based in Mumbai, has been the majority shareholder of Taro since 2010. The merger transaction includes the acquisition of 8,086,818 shares, representing 21.52 percent of Taro’s outstanding shares, at a cost of Rs 2,891.76 crore.
Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, expressed satisfaction with the completion of the merger process, noting its significance in leveraging synergies and enhancing capabilities across both organizations. He emphasized the strategic alignment and the potential for a stronger future together.
The $43 per share acquisition price represents a 48 percent premium over Taro’s closing price of $28.97 per share on May 25, 2023, the day before Sun Pharma initially proposed the merger.
Following the merger, Sun Pharma aims to integrate Taro’s strengths and resources into its own operations, aiming for enhanced growth and profitability in the pharmaceutical sector.
Sun Pharmaceutical Industries reported a consolidated net profit of Rs 2,654.58 crore for the fourth quarter ended March, marking a significant increase from Rs 1,984.47 crore in the same period the previous fiscal year.