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Sun Pharma In The News

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Sun completes Taro buy, stock hits record high

 

Sun Pharmaceuti'cal said on Wednesday that it has completed the acquisi'tion of Israeli company Taro Pharma, after a protracted legal battle. The stock of Sun vaulted to a record high of Rs 1,984.70 before retracting to close at Rs 1,921.40 on BSE.
 
Sun Pharma paid about $39 million for the founding families' 12.7% stake, taking its shareholding in Taro to 48.7% at a total investment of $144 million, a spokeswo'man for Sun said. The pur'chase of Taro will help Sun expand its generic offerings in the United States, Canada and Israel, the company said. Taro has factories in Canada and Israel that man'ufacture topical cream and ointments, liquid, capsules and tablets.
 
"We intend to build on Taro's market presence in US, Israeland Canadaand its expertise in dermatology and paediatrics, along with speciality and generic Phar'maceuticals, and over-the-counter products," Dilip Shanghvi, chairman of Sun Pharma, who would double up as chairman of Taro, said. Earlier this month, Israe'li Supreme Court ruled in fa'vour of Sun allowing it to exercise an option to buy shares owned by Taro's founding shareholders the Levitt and Moros families - at $7.75 each.
 
"Post tendering of Taro promoter stake, Sun now controls 48.7% stake in Taro, ex-warrants, and voting rights of 65.8%. We estimate Sun to have paid around $37 mnfor this stake," Edelweiss said in a note.