Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Mylan Begins $27 billion Hostile Bid for Perrigo

The Generic-drug maker took its bid directly to shareholders after being rebuffed since April

(L-R) Robert J Coury,   Mylan and Josegh Papa,   Periggo

 

Mylan N.V. on Monday announced that it has officially took its $27 billion takeover bid directly to shareholders of Perrigo Company plc (NYSE: PRGO; TASE).

In April 29th Mylan made the same offer, then valued of over $35.6 billion. (see history further down). Perrigo has rejected Mylan’s offers as too low.

Mylan offer $75 in cash and 2.3 shares of Mylan for each Perrigo share held, valued at about $187, for a total $27 billion, compared to previous offer of $75 plus 2.3 Mylan shares per Perrigo share, for a total of $35.6 billion.

Perrigo’s shares down 8.3 percent in the past month. While Mylan’s has slid 34 percent in the past three months.

 

Perrigo shareholders will own approximately 40% of the combined company upon completion of the transaction. The offer set to expire Nov. 13, the company said in a news release.

The generic-drug maker Mylan best known for its branded EpiPen allergic-reaction treatment, which may soon face potential competitors.

Perrigo focus on cold and allergy medicines and infant formulas. The company distributions channels includes Walgreens Boots Alliance and Wal-Mart Stores.

Mylan’s Executive Chairman Robert J. Coury commented, “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 price we are offering Perrigo shareholders represents a generous multiple of approximately 19x[1] based on Mylan’s current share price, which is one of the highest multiples paid in our industry to date taking into account recent large transactions, and we believe this multiple fairly reflects the intrinsic value of Perrigo.”

Mr. Coury further commented, “We believe that the choice we have given Perrigo shareholders is more clear today than ever before: accept a highly attractive offer including $75 in cash and participate in the exciting potential for growth and value creation of a combined Mylan-Perrigo, or receive no upfront cash and risk a significant and precipitous drop in value in Perrigo’s stock, while weathering the delays and potential execution and integration risk inherent in Perrigo’s standalone strategy as it tries to achieve the scale, breadth and reach required for success in this industry.”

 

PERRIGO

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

Business

Now Platika joins and elite club of $10 billion plus Israeli firms.

Advertisement