Drug-maker Sun Pharma will continue to pursue its proposal with Israeli drug-maker Taro to buy all outstanding shares, said Mr Dilip Shanghvi, Sun's Chairman and Managing Director.
“There is a rigid process in the US and Israel to protect minority shareholders and we will follow that process,” Mr Shanghvi told Business Line .
Sun Pharma holds about 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.
Sun's offer price at $24.40 per share was at a 25.96 per cent premium over the most recent closing of Taro's common stock, Sun had said at the time of the offer.
The pitch has changed since. Taro's share-price has increased to about $34 now. And media-reports from Israel say that Taro's improved financial performance could put Sun's proposal (that is to be approved by Taro's board) under some pressure.
SEC guidance
Mr Shanghvi said that the acquisition process was determined by guidance from the US regulatory SEC and Israeli regulations, and the company would continue to follow this process.
Further, a Sun Pharma note said, Taro had reported an increase in its sales and profits in the quarter under review, but this may not be sustainable as it was principally driven by increased selling prices on select products in the US market even as the overall volumes were flat.
In 2007, Sun had made a $454 million proposal to acquire Taro — a deal that was sealed after the two companies fought a long and cross-country battle.
Sun Pharma shares closed at Rs 552 on the BSE, up 2 per cent, on Monday.