In Short:
Shareholders of Taro Pharmaceutical Industries approved a merger with Sun Pharmaceutical Industries, ending a 10-year feud. Sun Pharma will acquire all Taro shares for $43 each. Taro will become private and delist from NYSE. The merger aims to better serve patients and compete in the market. Taro’s recent financial performance showed increased sales and net profit.
Shareholders Approve Merger: Taro Pharmaceutical Industries and Sun Pharmaceutical Industries
Big news alert! Shareholders of Taro Pharmaceutical Industries have given the green light to a merger agreement with Sun Pharmaceutical Industries, finally putting an end to a decade-long feud between the companies. It’s official!
The Votes are In!
At an Extraordinary General Meeting and an Ordinary Class Meeting on May 22, 2024, Taro shareholders (including a majority of unaffiliated shareholders) voted in favor of the merger agreement. The two companies made the announcement on Thursday, sealing the deal.
- Read: Sun Pharma and Taro announce merger agreement
Delisting from NYSE
Exciting times ahead! Once the merger is finalized, expected in about 35 days, Taro will become a privately held company wholly owned by Sun Pharma. It won’t stop there! Soon after, Taro’s shares will be de-listed from the NYSE. A new chapter begins!
Let’s rewind a bit. Back in January, Sun Pharma, based in Mumbai, had revealed plans to acquire all outstanding shares of Taro for $43 per share in cash. A historic moment in the making!
It’s been quite a journey. From Sun Pharma’s $454 million offer in 2007 to the recent sweetened offer of $43 per share in December 2023, these companies have come a long way. The persistence paid off!
Dilip Shanghvi, Managing Director of Sun Pharma, is thrilled about the merger, highlighting the benefits for patients, healthcare professionals, and customers. And Uday Baldota, Taro’s CEO, is looking forward to competing effectively in various markets with this new partnership.
Recent financials from Taro show promising results with sales reaching $629 million in FY24, up 9.8% from the previous year, and a net profit of $53.9 million. The future looks bright for this newly merged entity!
