India's Sun Pharma wins over Taro with higher offer
MUMBAI (Reuters) - India's Sun Pharmaceutical Industries (SUN.NS) has upped the buy-out price for its Israeli unit Taro Pharma (TARO.N) by 60 percent, winning over Taro's board and ending a long battle to gain full control of the U.S. listed drugmaker.
Under the latest offer, which comes a month after Taro rejected an earlier bid, Sun Pharmaceutical will pay $571 million to buy about a third of Taro's 44.5 million shares at $39.50 a share, up from an offer of $24.50 a share.
Mumbai-based Sun Pharma, India's top drugmaker by market value, said in a statement it planned to delist Taro from the New York Stock Exchange once the buy-out process was completed.
Taro said in a statement its board of directors had approved the sweetened offer.
"It's a positive move because this will help Sun Pharma bring Taro to its own levels and also run the U.S. business more efficiently," said Deepak Malik, analyst at brokerage Emkay.
"The price offered is market driven and hence is a fair price," he said.
Sun Pharmaceutical and its affiliates own about 66 percent of Taro's ordinary shares and 100 percent of the shares of Taro's founders, representing about 77.5 percent of the outstanding voting power in Taro.
Sun Pharma last week reported a 59 percent rise in quarterly net profit at 7.96 billion rupees ($143.9 million) as sales in its key U.S. market surged, helped by a robust performance by Taro.
Shares in Sun Pharma were up 0.8 percent at 680.8 rupees by 0524 GMT on Monday. Shares of Taro closed at $41.10 Friday on the New York Stock Exchange.
($1 = 55.32 rupees)
(Reporting by Sakthi Prasad in BANGALORE and Kaustubh Kulkarni; Editing by Richard Pullin)