Sun Pharma hikes stake in Caraco

Sun Pharmaceutical Industries Ltd has entered into an agreement with two large shareholders of its subsidiary Caraco Pharmaceutical Laboratories Ltd to acquire most of their common stock and options in the latter for $42 million.

This will increase the company's and its affiliates equity positions in Caraco to over 60 per cent from 44 per cent on a fully diluted basis including options, Sun Pharma informed the Bombay Stock Exchange on Tuesday.

The acquisition was at a consideration of $9 per common stock/option, involving a total outlay of about $42 million, it said adding, the acquisition would be funded through internal accruals.

The company's board cleared this investment, the agreement for which was inked last month with the two shareholders, to strengthen its base in the high priority United States generics market.