Sun Pharmaceutical to acquire Taro Pharma in a USD 454 million deal

Sun Pharmaceutical Industries Ltd has informed that the Company, together with its subsidiaries, has signed definitive agreements to acquire Taro Pharmaceutical Industries Ltd (TAROF, Pink Sheets), a multinational generic manufacturer with established subsidiaries, manufacturing and products across the U.S., Israel, Canada. North America represents more than 90% of Taros sates.This all-cash deal is subject to shareholder approval and requisite regulatory clearances. The Company intends to fund this USD 454 million acquisition with internal accruals and proceeds from its earlier USD 350 million FCCB. This deal values Taros equity at 230 million, or USD 7.75 per share which is at a 27% premium to its May 18, 2007 closing price of USD 6.10. The Company will also refinance USD 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 USD 45 million.