Sun Pharma has acquired Israel-based Taro Pharma for USD 454 million. The company will acquire Taro shares at USD 7.75 in cash, a 27% premium to its May 18 closing. The transaction represents a total equity value of approximately USD 230 million.
The domestic pharma major will refinance about USD 224 million in net debt of Taro. Sun Pharma had raised USD 350 million in FCCBs in 2004. Dilip Sanghvi, Chairman and Managing Director of Sun Pharma says that FCCB proceeds will be used to fund Taro Pharma acquisition and does not see any need to raise fresh debt for the acquisition.
Sun Pharma will provide USD 45 million interim equity to Taro by buying 7.5 million shares immediately.
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