Sun Pharma Global is a wholly-owned subsidiary of Sun Pharma organized under the laws of the British Virgin Islands (Sun Global) and a newly-formed, indirect wholly-owned subsidiary of Sun Pharma incorporated in Michigan.
Sun Pharma and Sun Global collectively own 75.8% of Caraco common stock.
The merger agreement provides that all shareholders of Caraco other than Sun Pharma and Sun Global will receive a cash payment of $5.25 per share upon the closing of the transaction.
The closing of the transaction is subject to certain terms and conditions customary for transactions of this type, including receipt of approval by the holders of a majority of Caraco’s outstanding common stock at a special meeting of stockholders.
The move comes after Caraco Pharma was warned by the US Food and Drug Administration (FDA) for violating manufacturing practices at its Cranbury facility in New Jersey in September 2010, reported Business-standard.com.
FDA had withheld approval of pending new drug applications of Caraco Pharma.
Earlier too, in 2009, Caraco had to stop production at Michigan facilities in Detroit, Farmington Hills, and Wixom for alleged breach of manufacturing regulations.