Sun Pharma to Buy Residual Caraco Shares

5 December 2010 (Last Updated December 5th, 2010 18:30)

Sun Pharmaceutical has launched an offer to buy all outstanding shares in its Caraco Pharmaceutical Labs unit at a price of $4.75 per share. Sun currently holds a 76% stake in the US-based company, and its offer represents a 5% premium over the most recent closing price of Caraco's s

Sun Pharmaceutical has launched an offer to buy all outstanding shares in its Caraco Pharmaceutical Labs unit at a price of $4.75 per share.

Sun currently holds a 76% stake in the US-based company, and its offer represents a 5% premium over the most recent closing price of Caraco's shares.

The offer would see Sun spend approximately $45.8m for the outstanding shares of the unit, but is expected to have only a minor impact on its earnings-per-share given the company's cash-rich status.

Although the proposal is not subject to any financial conditions, the deal will need approval of Caraco's board.

The news caps a good year for Sun, who saw its net profit rise 11% and net sales increase by 15.6% in Q2 September 2010 compared to the corresponding period in 2009.