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.
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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 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.”
May 11th, 2015 – Teva Rejected Opportunity to Acquire Perrigo
April 26th, 2015 – Perrigo Falls After Rejecting Improved Mylan Offer
April 9th, 2015 – Mylan Makes $29 Billion Bid for Perrigo
January 12th, 2015 – Perrigo Good Acquisition Candidate for Teva – Report
November 20th, 2014 – Perrigo to Raise $900 Million in NYSE Secondary Offering
November 6th, 2014 – Perrigo to Buy Belgium’s Omega Pharma in $3.1 Billion Deal
August 14th, 2014 – Perrigo Sees 2015 Profit Approaching $1 Billion
July 16th, 2014 – Perrigo Sale Could Be Disaster for Tel Aviv Stock Exchange
July 14th, 2014 – Perrigo Up for Sale