Detroit-based Caraco Pharmaceutical Laboratories Inc. will shortly cease operation as a publicly traded company.
Caraco said that a special meeting of its stockholders Tuesday approved the previously announced merger agreement with its parent company, India’s Sun Pharmaceutical Industries Ltd., and Sun Pharma Global Inc. and Sun Laboratories Inc.
Under the agreement, Sun Laboratories was merged into Caraco with Caraco as the surviving corporation, and each share of common stock of Caraco outstanding prior to the merger converted into the right to receive $5.25 in cash.
Caraco’s common stock will be delisted from the NYSE Amex as of the close of trading on June 14 and deregistered under the Securities Exchange Act of 1934 as amended.
Caraco’s stockholders of record will receive a letter of transmittal and instructions on how to surrender their shares of Caraco common stock in exchange for the merger consideration. Stockholders of record should wait to receive a letter of transmittal before surrendering their shares.
Detroit-based Caraco develops, markets and distributes generic pharmaceuticals to the nation’s largest wholesalers, distributors, drug store chains and managed care providers. Its Michigan operations remain closed down by the United States Food and Drug Administration. The FDA seized three Caraco Pharmaceutical plants in June 2009 after declaring the company in violation of its manufacturing rules. Caraco is currently negotiating with the FDA to reopen the plants.