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Taro Pharmaceutical Shares Surge Premarket as Sun Pharma Proposes Buyout

By Colin Kellaher

 

Shares of Taro Pharmaceutical Industries jumped more than 25% in premarket trading Tuesday after majority shareholder Sun Pharmaceutical Industries disclosed that it had made a proposal to buy the rest of the drugmaker.

India-based Sun, which already owns more than 78% of Taro, said in a filing with the U.S. Securities and Exchange Commission that it had delivered a non-binding indication of interest to buy the remaining Taro shares for $38 apiece, a premium of more than 29% to Friday's closing price of $29.39 for the Israel-based company.

Sun said it isn't considering a sale of its stake in Taro, and that it would welcome the opportunity to discuss its proposal with a special committee of Taro's independent board members and its advisers.

Taro shares were recently up 26% to $37 in premarket trading.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

May 30, 2023 08:31 ET (12:31 GMT)

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