Sun Pharma up 3% as Israel SC dismisses Taro appeal

MUMBAI: Sun Pharmaceutical Industries Ltd has announced that the Supreme Court of Israel has dismissed the appeal by Taro Pharmaceutical Industries Ltd of the previous ruling by the Tel-Aviv District Court holding that the Israeli special tender offer (STO) rules do not apply to the tender offer by Sun’s subsidiary, Alkaloida Chemical Company Exclusive Group Ltd, to purchase all outstanding ordinary shares of Taro for US $7.75 per ordinary share in cash. The court also lifted its temporary order that prohibited the closing of the offer prior to its ruling.

The three-judge bench of the Supreme Court of Israel said there were no legal or moral grounds upon which to require Sun to comply with the STO rules. The court declared that its ruling in favor of Sun was dictated by concerns of fairness, good faith and commercial stability and affirmed the district court's finding that Taro and its directors had acted in bad faith. The court also awarded Sun expenses.

This news saw Sun Pharma shares rise nearly 3 per cent to Rs 1,773.95 on the National Stock Exchange. The stock touched a high of Rs 1,848 versus a low of Rs 1,740.