Sun Pharmaceutical Industries Ltd. (Sun Pharma) said following the favourable Tel-Aviv court ruling in a case against Taro Pharmaceutical Industries Ltd. (Taro), it will be able to complete a previously announced tender offer to buy the outstanding shares in Taro.
In a regulatory filing, Sun Pharma said the tender offer to buy ordinary shares in the United States-listed Taro will close on Sept. 3 and not as earlier announced, on Sept. 2.
On June 30, Sun's unit Alkaloida Chemical Co. Exclusive Group Ltd. (Alkaloida) — which owns a 36 percent, or 24 percent voting rights, in Taro — issued a tender offer at $7.75 per ordinary share of Taro.
Sun Pharma said a Tel-Aviv Court yesterday rejected Taro's contention that Sun Pharma should have conducted a 'special' tender offer under Israeli law. The court stated that the directors should have studied the agreements before they were signed and Taro's directors cannot claim now that they suddenly decided a special tender offer is necessary, said a company release.
The company said that after the closing of the tender offer, Taro's controlling shareholders will have to deliver shares per the options agreement between Alkaloida and Taro. On May 18, Taro and Sun Pharma entered into a merger agreement, under which Alkaloida would acquire Taro and in case the merger was not consummated, Taro's controlling shareholders, led by Taro's chairman Barrie Levitt, would grant Sun Pharma an option to acquire all Taro's controlling shareholders' shares, Sun Pharma said. Alkaloida exercised an option to acquire shares in Taro from the controlling shareholders on June 25, after Taro terminated the merger agreement on May 28.