Organon shareholders have approved the all-cash deal, which is expected to close Sun Pharma’s largest acquisition to date.
Sun Pharmaceutical Industries Ltd. said on Friday that the shareholders of the U.S.-based Organon & Co. have approved its proposed takeover offer, which has an enterprise value of $11.75 billion. In its regulatory filing, Sun Pharma referred to the shareholder vote as an important step toward completing the deal. However, it is still subject to customary closing conditions, including relevant regulatory approvals.
Deal Structure
Under the terms of the merger, Organon is expected to become a wholly owned subsidiary of Sun Pharmaceutical Holdings USA, Inc, which is itself an indirect wholly owned subsidiary of Sun Pharma. The agreement, first signed in April this year, calls for Sun Pharma to acquire all outstanding shares of Organon for $14 per share in an all-cash transaction.
Background on the Acquisition
Sun Pharma’s decision to acquire Organon is one of the largest international acquisitions in the company’s development, as it allows it to build its presence in international markets through Organon’s know-how and products. The transaction requires shareholder approval, but the main challenges were already addressed before the acquisition was signed.
The acquisition of Organon by Sun Pharma will enable the former to strengthen its position in international markets as the company expands its presence outside India.
