Shares of Sun Pharmaceutical Industries hit a fresh 52-week high on Thursday after the pharma company announced entering into a merger agreement with Taro Pharmaceutical Industries. 

Sun Pharmaceutical’s shares hit an intraday high of Rs 1,343.40, up 3.4% from its previous closing price on the National Stock Exchange (NSE). The stock closed 2.93% higher at Rs 1,337.00. 

According to the exchange filing dated January 18, Sun Pharma, which presently holds a 78.42% stake in Taro Pharmaceutical Industries, has entered into a definitive merger agreement with the latter. 

In a bid to gain complete control over its subsidiary, Sun Pharma intends to acquire all of the outstanding ordinary shares of Taro Pharmaceutical Industries, not currently held by the company or its subsidiaries, at a price of $43 per share in cash. 

Sun Pharma initially proposed purchasing the remaining stake at $38 per share in May. Sun Pharma’s efforts to secure full ownership of the US-listed generic drug manufacturer are finally concluding after almost 17 years of negotiations and discussions.

Following the successful completion of the merger, Taro Pharma will be delisted from the New York Stock Exchange and transition into a privately held entity.