Sun is exercising 30,00,000 of the 67,87,500 issued warrants to purchase 30,00,000 shares of Taro at $6 per share, for $18 million in cash.
MUMBAI: Home-grown Sun Pharmaceutical’s acquisition of Israel-based Taro Pharmaceuticals is set to be delayed further following postponement of the latter’s shareholder meeting, earlier slated for Monday, for two more months.
The next meeting will be held on September 25, in order to allow shareholders more time to consider the proposed transaction, a company release stated.
Taro said it was taking this step “primarily out of concern that public statements made by Taro shareholders Franklin Advisers Inc and Templeton Asset Management Ltd and their representatives may have caused confusion among shareholders.”
The Israeli company now expects to conclude the merger “with an affiliate of Sun by the end of October 2007Contacted, a Sun Pharmaceutical spokesperson said, “The news flow in Israel has confused the shareholders.
Many have not yet understood how they should view this deal. We have further injected $18 million in the company so that it becomes clear how important Sun’s deal is for Taro.”
Sun is exercising 30,00,000 of the 67,87,500 issued warrants to purchase 30,00,000 shares of Taro at $6 per share, for $18 million in cash.
The Indian drug-maker has also relaxed its agreement terms allowing Taro to furnish company related information whenever required.
A day before the shareholders’ meeting, the Tel Aviv District Court dismissed Franklin Templeton’s plea to block the sale of Taro Pharmaceutical Industries to Sun Pharmaceuticals Industries.
The two shareholders also tried to bring an injunction against the shareholders’ meeting where the sale was supposed to be approved. The Court rejected the plea for injunction saying the court did not understand the goal of Franklin Templeton
Resources in seeking to block the sale of Taro Pharmaceuticals.
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