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Sun Pharma's Mr Dilip Shanghvi has resigned from Israeli drug-maker Taro's board of directors. He will be replaced by Sun's Mr Kalyanasundaram Subramanian.
Mr Shanghvi, Sun's Chairman and Managing Director, resigned from Taro as Chairman and member on the board of directors, to focus on other growth priorities within Sun Pharmaceutical Industries, Taro said.
Mr Kalyanasundaram, or Kal Sundaram as he is know in industry circles, has been appointed as Mr Shanghvi's replacement, serving on the board as its Chairman until Taro's next Annual General Meeting of shareholders, the company added.
The latest change at the helm of Taro comes even as Sun pursues its proposal to acquire all outstanding shares in Taro. It was in 2010 that Sun sealed its $454 million deal and acquired Taro, a good three years and several cross-country litigation after it had made its initial proposal to acquire Taro in 2007.
Sun Pharma holds 66 per cent in Taro, and last October it had proposed to buy out the remaining stake and get 100 per cent in the company.
The pitch has since turned. Sun's offer price at $24.40 a share was at a 25.96 per cent premium over the most recent closing of Taro's common stock, when Sun had made the offer. Subsequently, Taro's financial and stock performance improved, leading to reports that Sun could be under pressure to increase its offer.
However, earlier this February, Mr Shanghvi told Business Line that there was a rigid process in the US and Israel to protect minority shareholders and Sun would follow that process.
On changes at the helm of Taro, Mr Shanghvi said that Taro has made great strides since Sun Pharma took control in September 2010 and is now once again listed on a major exchange.
On Mr Sundaram's elevation, he added that it was in line with his new responsibility for Sun Pharma group's business interests in North and South America. Mr Sundaram has resigned as Director of Sun Pharma with effect from the March 31, 2012, and has relocated to the US.
Mr Sundaram was earlier head of multinational GlaxoSmithKline Pharmaceuticals in India, besides holding other global positions in the company. He joined Sun Pharma as Chief Executive Officer in April 2010.
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