Mylan To Launch Takeover Bid Directly To Perrigo Shareholders On September 14

(RTTNews) - Generic drugmaker Mylan N.V. (MYL) said Tuesday that it plans to launch its $27 billion cash and share takeover bid for Irish peer Perrigo Co. plc (PRGO) on Monday, September 14, 2015. The company is taking its takeover offer directly to Perrigo's shareholders on Monday, September 24, 2015 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. Based on Mylan's closing stock price on Friday, the offer values Perrigo at $185.52 per share.

Mylan said it expects to close the transaction on November 13, 2015, when at least a majority of the Perrigo shareholders will choose the offer. The company noted that Perrigo's shareholders will be given immediate value in cash of $75, as well as the long-term upside that will come with their ownership of about 40 percent in the combined company.

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.

Mylan said Tuesday that its executive chairman Robert Coury has sent a letter to Perrigo Chairman and Chief Executive Officer Joseph Papa, reiterating Mylan's commitment to the transaction and reaffirming the "compelling value" of the Mylan offer to Perrigo shareholders.

In the letter to Perrigo's CEO Papa, Coury said, "We have been clear from the very beginning that we were going to make this compelling combination a reality, and despite your efforts to confuse and cast doubt every step of the way, we have done—and will do—every single thing we said we were going to do. We announced under Rule 2.5 our legally binding commitment to make an offer. We received EU antitrust approval."

Coury said he was extremely confident that Perrigo shareholders will view the Mylan offer to be superior to any other option available to them. Mylan's shareholders, in late August, Mylan's shareholders approved the company's proposed acquisition of Perrigo.

In mid-August, Mylan formally lowered the acceptance condition for its offer to acquire Perrigo, saying that rather than requiring the support of not less than 80 percent of Perrigo ordinary shares to complete the transaction, it only requires the support of just greater than 50 percent of Perrigo ordinary shares.

MYL is trading at $48.21, up $0.16 or 0.33 percent on a volume of 1.85 million shares. PRGO is trading at $180.23, up $1.43 or 0.80 percent on a volume of 226,701 shares.