Mylan takes takeover bid to Perrigo shareholders
Generic drugmaker Mylan NV has officially launched its formal offer to acquire all outstanding shares of Ireland-based Perrigo to the company’s shareholders.
Perrigo Company plc
$33.06
10:59 02/05/24
Mylan announced last week that it was planning to launch a cash and share offer directly to Perrigo shareholders after its management and board rejected previous offers on the basis that they were too low.
Under the terms of the offer, which expires on 13 November, Perrigo shareholders will receive $75 in cash and 2.3 Mylan shares for each Perrigo share. Perrigo shareholders will own around 40% of the combined company.
Mylan’s executive chairman Robert J Coury said: “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.”
Mylan said the price offered to Perrigo shareholders represents a multiple of approximately 19x based on Mylan's current share price, which it said was one of the highest multiples paid in its industry to date taking into account recent large transactions.
“We believe this multiple fairly reflects the intrinsic value of Perrigo," said Coury.