Mylan Formally Launches Takeover Bid for PerrigoBy
Mylan N.V. has officially commenced its formal offer to acquire all outstanding ordinary shares of Perrigo Company plc. Under the terms of the offer, Perrigo shareholders will receive $75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share for an approximate deal value of $27 billion. If a deal were to transpire, Perrigo shareholders would own approximately 40% of the combined company upon completion of the transaction.
Mylan has taken its bid to acquire Perrigo directly to Perrigo shareholders following rejection of its earlier proposals to acquire the company. Perrigo has acknowledged receipt of Mylan’s latest offer and advised its shareholders to take no action in relation to the offer at this time pending the review of the offer by the Perrigo board of directors. Perrigo said such review will occur within 10 business days after receiving the offer (which was on September 14, 2015) in compliance with US securities and Irish takeover rules. >/p>
Mylan’s Executive Chairman Robert J. Coury commented in a company statement: “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.
The offer and withdrawal rights are scheduled to expire on November 13, 2015, unless the offer is extended with the consent of the Irish Takeover Panel. The acceptance condition for the offer requires greater than 50% of Perrigo ordinary shares to have been tendered into the offer.”We look forward to discussing our offer directly with Perrigo shareholders in the coming weeks and are confident that the clear and direct pathway to completion that we have provided will allow us to close our offer on November 13th with the robust support of Perrigo shareholders,” Coury later stated.
Mylan CEO Heather Bresch commented as well: “The strategic logic behind this combination is abundantly clear and has been recognized by many third-party commentators and Perrigo itself. Together, Mylan and Perrigo will create a unique and powerful force in our industry, with the scale, breadth, and reach to create significant and sustained value for shareholders and all other stakeholders. This strategic rationale is only further strengthened by the rapid consolidation within our industry. While we believe Perrigo represents the most attractive entry point for Mylan to apply its global manufacturing and supply chain expertise and broad commercial reach to the over-the-counter (OTC) category, Mylan is committed and well-positioned to pursue the OTC segment independently given its global scale and capabilities.”