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Taro Pharmaceutical Industries Ltd. Message Board

  • moydegem moydegem Sep 5, 2013 10:17 AM Flag

    What does the Taro's new compenstion policy means to minority investors?

    Taro's new compensation policy may cost Taro additional $4.5 Mn to $6 Mn annually.
    What does it mean to a Taro's minority shareholder?
    It means a reduction of $0.1-0.13in EPS . If Taro would have been traded at its peer multiple (22), every share The minority owns would be discounted by $2.2-$2.93.
    Also EBITDA would be reduced by $4.5 Mn - $6 Mn. if a decent multiple of a buy out is 15 xEBITDA, then the offer would be reduced by $67.5 Mn to $90 Mn. This money will come out of your own pocket if proxy items regarding management compensation will be approved.
    Do you think Taro's management deserve a reward from minority after twice it tried to squeeze minority out ?

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