Alkaloida Chemical Company Exclusive Group Ltd (Alkaloida), a subsidiary of Sun Pharma, has commenced a tender offer for all ordinary shares of Taro Pharmaceutical Industries Ltd for $7.75 per share in cash.
On May 18, 2007, Taro and Sun Pharma's subsidiaries entered into a merger agreement whereby Sun Pharma's subsidiary would acquire Taro, which the Taro Board of Directors unanimously approved. In the event of the merger was not consummated, Taro's controlling shareholders led by Taro's Chairman, Barrie Levitt, granted Sun Pharma an option to acquire all their shares, including all of the founders' shares of Taro.
On May 28, 2008, Taro improperly terminated the merger agreement, an action which Sun has challenged in the New York Supreme Court.
On June 25, 2008, Alkaloida exercised its option to acquire all shares held by Taro shareholders. As required by the option agreement, Alkaloida has commenced a tender offer for all ordinary shares. The option agreement required that the tender offer be at $7.75 per share.
The tender offer is scheduled to expire at midnight, New York City time, on Monday, July 28, 2008, unless the tender offer is extended.
The tender offer is not conditioned on the availability of financing or the approval of the directors of Taro. |
