Endo confirms bid to buy Salix Pharmaceuticals for $11.2bn

Endo said it would pay $175 per Salix share, which will include 1.4607 of its shares plus $45 in cash.

Earlier in February, Canada-based Valeant Pharmaceuticals signed an agreement to acquire all of the outstanding common stock of Salix for $158.00 per share in cash, or a total enterprise value of approximately $14.5bn.

According to Endo, the cash and stock proposal represents an 11% premium over the purchase price to be paid to Salix stockholders pursuant to the Valeant merger agreement.

Endo expects the transaction could be completed in the second quarter of 2015, if a negotiated transaction is to be agreed to with Salix.

The Irish healthcare firm said in a statement that the proposed transaction would not be subject to any financing condition and that it would be prepared to assist with liquidity needs related to paying a termination fee including certain Valeant expenses.

Meanwhile, Valeant said in a statement: "We are firmly committed to our all-cash agreed transaction, which delivers immediate and certain value to Salix shareholders.

"The tender offer is scheduled to expire at the end of the day on March 31, 2015, and Valeant expects to be in the position to close the transaction on April 1, 2015."

Salix said that its Board of Directors in consultation with its financial and legal advisors will carefully review and consider the proposal from Endo and pursue the course of action that it believes is in the best interests of the company’s stockholders.

Image: Endo International submits proposal to acquire Salix for $15.7bn. Photo: courtesy of FreeDigitalPhotos.net / Wagging Dog Media Limited.