TARO - Why Shares of Taro Pharmaceutical Are Rising Tuesday
2023-05-30 12:25:31 ET
Shares of Taro Pharmaceutical Industries (NYSE: TARO) were up more than 23% Tuesday morning after the company reported late Friday that in a Securities and Exchange Commission (SEC) filing, it was looking at a buyout offer from Sun Pharmaceuticals, India's largest drugmaker.
Sun Pharmaceuticals already owns 78.5% of Taro's shares and now plans to buy the remaining 21.5% of the company's shares at $38 a share, at a premium of 31.2% over the stock's closing price of $28.97 on May 25. The deal would be worth $307 million.
Taro's directors, in a filing with the SEC, pushed for the move, saying that it would benefit all shareholders of Taro. After the deal, Taro would become a wholly owned subsidiary of Sun Pharmaceutical. Taro said it was appointing a special independent committee of directors to consider the offer.
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Why Shares of Taro Pharmaceutical Are Rising Tuesday