By IANS
Mumbai : India's leading drug maker Sun Pharmaceutical Industries Monday said it has finalised a deal for $454 million to buy Israel-based generic drug producer Toro.
Sun Pharma Monday informed the Bombay Stock Exchange that it has agreed to pay $7.75 per share for Toro's equity valued at $230 million.
"This all-cash deal is subject to the shareholder approval and requisite regulatory clearances. The company intends to fund this $454 million acquisition with internal accruals and proceeds from its earlier $350 million FCCB," it said in a statement.
"This deal values Taro's equity at $230 million, or $7.75 per share which is 27 percent higher from Friday's close of $6.10."
Sun Pharma will also refinance $224 million in net debt of Taro. In addition, to provide immediate liquidity for Taro, the company will provide interim financing to the extent of $45 million, it said.
"We will look forward to working with Toro and its employees. This a good opportunity for Sun and Toro to work together to create increasing value and add a complementary multinational organisation to Sun's business," said Sun chairman and managing director Dilip Shanghvi.
"Taro, which gets 90 percent of its sales from North America, will help widen Sun's presence in dermatology and pediatrics segments," Shanghvi said.
Meanwhile, two firms which together own 9 percent of Toro's ordinary shares – Franklin Advisers Inc. and Templeton Assets Management Ltd. – have filed a case in a Tel Aviv court seeking to prevent what they allege to be discriminatory against minority shareholders. The motion was scheduled to be heard Monday.