Sun Pharma still keen on Taro takeover

MUMBAI: Sun Pharmaceutical Industries is still keen on acquiring Israel’s Taro Pharmaceuticals but the legal tussle between the two could delay the process, said Dilip Shanghvi, the Mumbai-based company’s chairman and managing director. He ruled out an out-of-court settlement with the Israeli company.

“Going by Taro’s behaviour and (promoters) the Levitt family’s passion for filing court cases, it appears that the resolution of all issues would take some time,” Shanghvi said. He, however, added that Sun Pharma had moved decisively to protect its interests and exercised the option to buy out all of Taro’s shares. “To secure long-term interests, we are committed to completing this transaction,” he said.

After terminating the merger agreement, Taro filed two cases against Sun Pharma in a Tel Aviv court-one to make the Indian company comply with special tender offer rules under Israeli laws and another to stop it from interfering in the sale of Taro’s Israeli facility.

Sun Pharma filed a counter case against Taro in the New York Supreme Court to make the Israeli company’s controlling shareholders honour their promises under the option agreement and to have the merger agreement’s termination declared ‘improper’.

Meanwhile, Sun Pharma’s net profit grew 121% in the April-June quarter to Rs 501.5 crore over the same quarter last year. Net sales grew 66% to Rs 1,047.20 crore, and international business was up 134%. Sun Pharma’s US generic business grew 206% year-on-year.

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