Mylan Sweetens its Bid for Perrigo
Still being pursued by Israeli generics giant Teva, Netherlands-based drugmaker Mylan has increased its offer to acquire the issued and to-be-issued shares of smaller generics producer Perrigo.
Under the terms of the sweetened offer, Perrigo shareholders would receive $75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share. Altogether, analysts said the total per share value is $232.2l, about 25 times the company's 2014 EBITDA (pro forma for Perrigo's recent acquisition of Omega Pharma).
Goldman, Sachs & Co., as financial advisor to Mylan, said it is satisfied that the company has sufficient resources to satisfy in full the cash consideration payable upon full acceptance of offer.
Mylan's executive chairman Robert J. Coury called the proposed deal a "truly compelling combination, which is a win-win for both Mylan and Perrigo shareholders and all other stakeholders."
If the deal goes ahead, Mylan shareholders would own about 60.7% of the outstanding Mylan ordinary shares on a fully diluted basis, and former Perrigo shareholders would own approximately 39.3% of the outstanding Mylan ordinary shares on a fully diluted basis.
Mylan's board has unanimously rejected Teva's more than $40 billion offer, which is contingent on the Perrigo transaction not being consummated. Perrigo's board previously rejected Mylan's bid.
