Mylan to acquire remainder of Matrix – report

The open offer for Matrix could be a first step in delisting the company from the stock markets, which would release the company from its regulatory obligations, the Mint newspaper said.

Mylan is the world’s third largest generics pharmaceuticals firm after its May buyout of the non-patented drugs business of Merck KGaA. Although Mylan has not commented on the potential deal, Mint said that two executives of the company and a consultant working closely with the drug maker had confirmed the move.

Mylan acquired 71% of Matrix last August, leaving the rest as a public shareholding. However, the remainder left listed is below the 25% listing requirement threshold that India’s stock market regulator is planning to make mandatory in 2008. If Mylan wants the Matrix scrip to remain listed, it would have to offload some of the Hyderabad firm’s stock or dilute equity capital, the newspaper said.