Taro Pharma Begins Tender Offer To Repurchase Up To $200 Mln Of Ordinary Shares

(RTTNews) - Taro Pharmaceutical Industries Ltd. (TARO) announced Monday that it has commenced a modified "Dutch auction" tender offer to repurchase up to $200 million of its ordinary shares at a price not greater than $97.50 per share nor less than $84.50 per share.

If the Offer is fully subscribed, the number of shares to be purchased in the Offer represents about 4.6% to 5.3% of Taro's currently issued and outstanding shares depending on the purchase price payable for those shares pursuant to the Offer.

The NYSE closing price of Taro ordinary shares on November 22, 2013, the last full trading day before today's announcement and commencement of this tender offer, was $89.57 per share.

The Offer will expire at 12:00 midnight, New York City time, on Monday, December 23, 2013, unless extended by Taro.

The company said it will purchase only those shares properly tendered and not properly withdrawn upon the terms and conditions of the Offer. All shares accepted for payment will be paid promptly after the expiration of the tender offer period, net in cash, less any applicable withholding taxes and without interest.

At the maximum Final Purchase Price of $97.50 per share, the Company would purchase 2.05 million shares if the Offer is fully subscribed, which would represent approximately 4.6% of the issued and outstanding shares as of November 20, 2013. At the minimum Final Purchase Price of $84.50 per share, the Company would purchase 2.37 million shares if the Offer is fully subscribed, which would represent approximately 5.3% of the issued and outstanding shares as of November 20, 2013.

As of October 31, 2013, Taro had about $741 million in cash and cash equivalents and short-term bank deposits. Taro said it will use a portion of its cash and cash equivalents and short-term bank deposits to fund the tender offer.