Mylan plans to acquire remaining interest in Matrix Laboratories

Mylan, a US-based generic pharmaceutical company, has announced its plans to purchase the remaining interest in India-based pharmaceutical company Matrix Laboratories from minority shareholders pursuant to a voluntary delisting offer.

Mylan, through a wholly owned subsidiary, currently owns approximately 71.2% of Matrix and controls more than 76% of its voting rights. The impact of the transaction is anticipated to be accretive to Mylan’s 2009 earnings.

Mylan has approved an indicative acquisition price of up to INR150 per share. This price reflects a premium of 27% of the closing share price of Matrix on March 26, 2008, the last trading day before the announcement. It also represents a premium of 54% and 77% over Matrix’s average share price during the last month and last six months, respectively, said Mylan.

If as a result of the delisting offer, the total promoter shareholding (including 4.97% shares held by the Indian promoter) exceeds 90% of all outstanding shares, Matrix will be delisted from the Bombay Stock Exchange and the National Stock Exchange of India. The delisting process is expected to take approximately 12 weeks subject to obtaining regulatory approvals. If Mylan acquires all remaining 45 million shares, the aggregate purchase price will total approximately $133 million. Mylan intends to fund the purchase using current cash balances.

The acquisition and delisting are conditional upon Mylan’s acceptance of the exit price per share, which Mylan may accept or reject at its sole discretion, as well as receipt of any statutory or regulatory approvals.

Robert Coury, vice chairman and CEO of Mylan, said: This move represents another step toward achieving our goal of becoming the most efficient global generics and specialty pharmaceutical company in the industry. The transaction also would provide Matrix’s public shareholders with an attractive near-term liquidity opportunity.