Sun Pharma renewed its offer price to buy all outstanding shares of Taro Pharma. The offer price was raised to $43 per share from the previous proposal of $38 per share.
On December 11, shares of Sun Pharma were trading at Rs 1,235.3 per share on the NSE. Now, at around 10: 37 AM the shares are trading at Rs 1237.70
Following this proposal, Taro shares rose 29 percent in trading on December 11, to $38 apiece in the first offering. Shares continued to rise in extended trading hours, adding 8.6 percent in trading.
Sun Pharma said that negotiations regarding the exact terms and agreements regarding the revised proposal are ongoing and there is no assurance that a definitive agreement will not be reached. The Amended Proposal is subject to the satisfaction of further corporate approvals, negotiations, and other customary conditions.
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Sun Pharma proposed to buy 100% stock
Earlier, On May 26, Sun Pharma expressed interest in acquiring all shares of Taro Pharma, surpassing its 78.48 percent stake. The proposal is for an all-cash transaction to acquire all the outstanding shares of Taro, meaning that following the transaction, Sun Pharma will own 100 percent of the shares.
on October 27, Taro Pharma reported a net profit of $8.5 million for the July-September quarter. The company posted a net loss of $2.8 million a year ago. Net profit was $14.3 million.
Investors are closely having their eye on the deal, if the deal between the two pharma companies would be finalized then it may give a boost to sun pharma stock.
In the last 5 days, Sun Pharma shares are down by 1.5%. However, the shares rose by around 4% in the last 30 days. In the last 6 months, the stock jumped by 24%.
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(Disclaimer: This is an analysis of performances of share only. Jagran does not advise investing, please consult with an advisor before investing.)