Sun Pharma wins over Taro with higher offer

Sun Pharmaceutical Industries  has upped the buy-out price for its Israeli unit Taro Pharma by 60%, winning over Taro's board and ending a long battle to gain full control of the US listed drugmaker.

Under the latest offer, which comes a month after Taro rejected an earlier bid, Sun Pharmaceutical will pay USD 571 million to buy about a third of Taro's 44.5 million shares at USD 39.50 a share, up from an offer of USD 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 US 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% of Taro's ordinary shares and 100% of the shares of Taro's founders, representing about 77.55 of the outstanding voting power in Taro.

Sun Pharma last week reported a 59% rise in quarterly net profit at Rs 7.96 billion as sales in its key US market surged, helped by a robust performance by Taro.

Shares in Sun Pharma were up 0.8% at Rs 680.8 by 0524 GMT on Monday. Shares of Taro closed at USD 41.10 Friday on the New York Stock Exchange.