Mylan Launches Takeover Bid Directly To Perrigo Shareholders

(RTTNews) - Generic drugmaker Mylan N.V. (MYL) said Monday that it has officially commenced its formal offer to acquire all outstanding ordinary shares of Irish peer Perrigo Co. plc (PRGO, TASE).

Mylan said last Tuesday that it plans to launch its $27 billion cash and share takeover bid directly to Perrigo's shareholders after Perrigo's management and board refused to engage in talks regarding its offer.

Under the terms of the offer, Perrigo shareholders will receive $75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share. Perrigo shareholders will own about 40 percent of the combined company upon completion of the transaction.

Robert Coury, Executive Chairman of Mylan said, "With the overwhelming support of Mylan shareholders, today we officially are taking our offer directly to the Perrigo shareholders. We are highly confident that the majority of Perrigo shareholders will support this full and compelling offer, particularly in the absence of any competing interest in this asset and the significant uncertainties, execution risk and lengthy timetable associated with Perrigo's standalone strategy."

Mylan said it looks forward to discussing its offer directly with Perrigo shareholders in the coming weeks.

The company is making the offer in accordance with its announcement pursuant to Rule 2.5 of Irish Takeover Rules that set forth Mylan's legally binding commitment to commence an offer for the entire issued and to be issued share capital of Perrigo.

The offer and withdrawal rights are scheduled to expire on November 13, 2015, unless extended with the consent of the Irish Takeover Panel. To complete the transaction, Mylan requires the support of just greater than 50 percent of Perrigo ordinary shares.

Mylan had launched a bid for Perrigo earlier this year, to fend a hostile takeover bid for itself from Israeli generic drugmaker Teva Pharmaceutical Industries Ltd. (TEVA). However, Teva said in late July that it has agreed to acquire Allergan plc's (AGN) generic drug business for $40.5 billion and also withdrew its offer to acquire Mylan.

MYL closed Friday's trading at $48.65, up $0.85 or 1.78 percent on a volume of 4.58 million shares.

PRGO closed Friday's trading at $179.67 1.50 0.84 percent on a volume of 655,916 shares.