Indian company Sun Pharmaceuticals has made an offer to purchase all the shares of Israeli company Taro Pharmaceutical Industries (NYSE: TARO). Sun, which holds a 78.5% stake in Taro, is offering $38 per share, a premium of 30% per share. Following the offer, Taro's share price jumped by 22.66% in afterhours trading to $36.05, having closed yesterday with a market cap of $1.105 billion. Sun's offer reflects a company value of $1.4 billion.
Taro's board of directors said that it has set up a special independent committee of directors to examine the offer.
Taro's share price is 80% below its peak in 2015, when the company had a market cap of $7 billion. Over the past year, the company's share price is down 20%, before the recent jump in afterhours trading.
Taro has gone beneath the radar in recent years. The veteran generic drug producer was founded in Israel in 1950 and at the end of 2022 had 1,455 employees, nearly half of them in Israel working in manufacturing, quality control, R&D, administration, marketing and sales. Since 2010, Taro has been the majority shareholder and now the Indian company is seeking to delist from Wall Street.
Published by Globes, Israel business news - en.globes.co.il - on May 30, 2023.
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