Caraco completes tender offer to acquire Dusa Pharma

Written By Unknown on Jumat, 21 Desember 2012 | 08.11

Drug firm Sun Pharmaceutical Industries today said its US-based subsidiary Caraco has successfully completed the tender offer to acquire Dusa Pharmaceuticals. The company said after the tender offer's expiration, 2,09,46,624 shares of common stock of Dusa had been validly tendered, representing nearly 82.4 per cent of the outstanding shares of Dusa, Sun Pharma said in a statement.

Last month, Sun Pharma had inked a pact to acquire US-based Dusa Pharmaceuticals for around USD 230 million (around Rs 1,250 crore). Under the terms of the agreement, Caraco had to commence a tender offer for all of the outstanding common stock of Dusa at a price of USD 8 per share in cash, a 38 per cent premium to the closing price of Dusa's common stock on November 7, 2012.

"Caraco Pharmaceutical Laboratories (CPL) intends to promptly move forward with a short-form merger under New Jersey law after exercising its top-up option under the merger agreement, and Dusa will become a wholly owned subsidiary of
CPL," it said.

The company said the shares which were not tendered during the offer would be cancelled and cease to exist. The shares would be "converted into the right to receive the same USD 8 per share in cash paid in the tender offer". "Following the merger, Dusa's common stock will cease to be traded on the NASDAQ global market," it added. Detroit-based CPL develops, manufactures, markets and distributes generic pharmaceuticals to the nation's largest wholesalers, distributors and drugstore chains.

Shares of Sun Pharma today closed at Rs 746.45 on the BSE, down 1.99 per cent from its previous close.



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