Alkaloida Chemical Company, a subsidiary of Sun Pharmaceuticals, has extended the expiry date of the tender offer for purchase of all outstanding ordinary shares of Taro Pharmaceuticals. The offer will now expire at 5 pm, New York City time, Friday, October 3, unless further extended or earlier terminated.
On Monday, the Supreme Court of Israel had agreed to Taro?s request for temporary relief until it decides on the company?s appeal. Supreme Court Judge Ayala Procaccia ordered Sun Pharma to extend its offer to buy Taro shares until the court hears the appeal. The SC has set December 15 as the date of hearing. A Sun Pharma statement said, ?If the temporary order remains in effect and the Supreme Court [of Israel] has not decided the appeal by October 3, Sun will further extend the offer while the temporary order remains outstanding.?
The tender offer was extended to comply with the Supreme Court of Israel?s order. The order temporarily prohibited the closing of the offer until the court issues a decision on the appeal of the litigation commenced against Alkaloida and its affiliates by Taro and certain of its directors regarding the applicability of the special tender offer rules under the Israeli companies law, Sun Pharma said.
The offer was commenced on June 30 in order to comply with the terms of option agreement between Alkaloida and the controlling shareholders of Taro. Alkaloida exercised its options to acquire shares of Taro from the controlling shareholders on June 25. The option agreement required Alkaloida to commence a tender offer at $7.75 per ordinary share of Taro held by other shareholders, promptly after exercising the options. The offer had previously been scheduled to expire on Wednesday, September 3, 2008.
