The Indian company Sun Pharmaceuticals made an offer to buy all shares of the Israeli company at a premium of 30%.
India’s Sun Pharmaceuticals has made an offer to buy all shares of the Israeli company Taro Pharmaceutical Industries (NYSE: TARO). Sun, which owns 78.5% of Taro’s shares, is offering a $38 per share premium, plus a 30% stake. After the offering, Taro’s share price jumped 22.66% in after-hours trading to $36.05, after closing yesterday with a market capitalization of $1.105 billion. Sun’s bid reflects the company’s valuation of $1.4 billion.
Taro’s board said it has formed an independent special committee of directors to examine the offer.
Taro’s share price is down 80% from its peak in 2015, when the company had a market capitalization of $7 billion. Over the past year, the company’s share price has fallen 20%, before the recent jump in after-hours trading.
Taro has gone under the radar in recent years. The veteran generic drug producer was founded in Israel in 1950 and at the end of 2022 had 1,455 employees, almost half of whom are in Israel working in manufacturing, quality control, research and development, management, marketing and sales. Since 2010, Taro has been the majority shareholder, and now the Indian company is seeking to be delisted from Wall Street.
Published by Globes, Israel business news – en.globes.co.il – on May 30, 2023.
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