Taro bid revision remains unchanged by Sun Pharmaceuticals

Jan06

Filed Under: BSE, Dow Jones, NASDAQ, NSE by: admin

Taro bid revision remains unchanged by Sun Pharmaceuticals

January 6 2009 - Sun Pharmaceutical revised the offer on Taro bid after the companies were explored to an out court settlement within 30 days, as directed by the Israeli Supreme Court, on 8 December 2008. It owns 36% of Taro, though on Tuesday(6 January 2009) discloses two options to the listed drug maker for buying the remaining stake in the New York stock exchange.

Compared to the earlier proposal Sun Pharma will have to pay $14 more in its newer first option, than its earlier proposal. $9.95 each was offered by it to buy the shares instead of the earlier one which is $7.75 per share.

All share holders were offered $9 per ordinary share by the company except Taro Chairman Barrie Levitt, and for the five million-odd shares apprehended by the promoter group $8.5 per ordinary share will be certain according to second option.Expense of Sun’s will be slightly less compared to the first option, if this was accepted. Taro, is yet to respond to the revised offer given by Sun Pharma.

Sun’s proposal set to Taro has been considered keeping in mind primarily the interests of minority shareholders, said by company spokesperson as quoted by media. Taro has not made its alternative proposal, but has not yet responded to Sun’s proposal.24.6% rise in sales to Rs 929.37 crore, rose the net profit to 55.6% to Rs 303.14 crore compared to Q2 September 2008 over Q2 September 2007.

Sun Pharma an international, integrated, speciality pharmaceutical company manufactures and markets a large basket of pharmaceutical formulation as branded generics as well as generics in India, US and several markets across the world.

On January 6 2009, company made the announcement during trading hours when the stock ended 0.42% down at Rs 1043.85 on BSE. Meanwhile there is 29.03 points, or 0.29%, to 10305.78 rise in BSE sensex.

Average daily volume of scrip was 58,101 shares in the past one quarter, as on BSE 6,274 shares were traded in the counter.

There is highs and lows in the market as, it hits a high of Rs 1048.65 and a low of Rs 1032 so far during the day. On 24 January 2008, the stock had 52-week low of Rs 890 compared to 52-week high of Rs 1557.80 on September 2008.

There is underperformance in the market over the past one month till 6 January 2009, rising 3.44% as compared to the Sensex’s 14.62% rise.In the past one quarter there is a fall of 29.69% as compared to Sensex’s fall of 17.97%.

Face value per share is Rs 5, as market capitalization has an equity of Rs 103.56 crore of the India’s largest drug maker.

Rs 1041 the current price discounts its Q2 September 2008 annualised EPS of Rs 58.54, by PE multiple of 17.74.

Symbol

Open Price

High Price

Low Price

LTP

Prev Close

% Change

Total trd Qty

ISIN Code

SPARC - EQ