| Mylan to acquire 71.5% Matrix stake for $736mn |
| Our Web Bureau / Mumbai August 28, 2006 |
| Mylan Laboratories will acquire up to 71.5% stake in Matrix Labs for $736 million at approximately Rs 306 per share. According to a release issued by Matrix to the BSE today, Mylan will purchase 51.5% of the company's shares outstanding pursuant to an agreement with certain selling shareholders and will make an "open offer" to the company's remaining shareholders to acquire up to an additional 20% of the shares. "Assuming the open offer is fully subscribed, the total purchase price is expected to be approximately $736 million. The company will remain a publicly traded company in India, and will continue to operate on an independent basis," the release added. N Prasad, executive chairman of Matrix, will join Mylan's board of directors and executive management team. "Mylan, a proven industry leader, is an ideal partner for Matrix. Our strategic vision remains unchanged and we believe this transaction creates greater growth opportunities for Matrix and its employees and also will allow us to accelerate our existing expansion plans in India and abroad," Prasad said. Mylan will acquire all the company's shares currently owned by (i) Temasek (Mauritius) Pte Ltd (an investment vehicle of Singapore Government-owned Temasek Holdings), (ii) entities controlled by Newbridge Capital (a joint venture between Texas Pacific Group and Blum Capital Partners), and (iii) Spandana Foundation. As part of the same agreement with these shareholders, Mylan will acquire shares from the Prasad. After the transaction, Prasad will continue to own 5% of the company's shares, the release added. "A portion of the funds received by Newbridge, Temasek and N Prasad will be used to purchase newly issued shares of Mylan common stock. Newbridge has agreed to invest approximately $93 million, Temasek has agreed to invest approximately $46 million, and N Prasad has agreed to invest $25 million each at a price per Mylan share of $20.85," the release added. Our Hyderabad Bureau adds: Explaining the rationale behind the transaction, an official release by Matrix said that Mylan and Matrix together will have approximately 5,100 employees in 10 countries. "Matrix will provide Mylan with a significant presence in important emerging pharmaceutical markets, including India, China, and Africa, as well as a European footprint and distribution network through Matrix |
