Taro Pharma agrees to buyout offer from India's Sun Pharma

Mon Aug 13, 2012 9:12am IST

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Aug 12 (Reuters) - Taro Pharmaceutical Industries said late on Sunday it has agreed to be taken private by Sun Pharmaceutical Industries, weeks after it rejected an earlier $367 million bid from the Indian drugmaker.

All shareholders of Taro other than Sun Pharmaceutical and its affiliates will receive a cash payment of $39.50 per share upon the closing of the deal, according to the terms released.

Sun Pharmaceutical had earlier offered $24.50 per share, which was subsequently rejected by Taro.

Sun Pharmaceutical and its affiliates collectively own about 66 percent of the outstanding Taro ordinary shares and 100 percent of the shares of Taro's founders, representing about 77.5 percent of the outstanding voting power in Taro.

Based on 44.5 million shares outstanding, according to Reuters data, the one-third stake to be bought out by Sun Pharmaceutical is valued at $571.3 million.

The deal was approved by Taro's board of directors, the company said. Shares of Taro closed at $41.10 Friday on the New York Stock Exchange.

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