Mylan submits takeover offer to Perrigo shareholders

Generic-drug maker Mylan N.V. said on Monday that it has officially launched its formal offer to acquire all outstanding ordinary shares of Perrigo Co. Plc, based in Ireland.

"With the overwhelming support of Mylan shareholders, today we officially are taking our offer directly to the Perrigo shareholders,” Mylan Executive Chairman Robert Coury said. “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 stand-alone strategy. “

Under the terms of the offer, Perrigo shareholders will receive $75 in cash and 2.3 Mylan ordinary shares for each Perrigo ordinary share. Upon completion of the transaction, Perrigo shareholders will own approximately 40 percent of the combined company.

"Further, the price we are offering Perrigo shareholders represents a generous multiple of approximately 19x(1) based on Mylan's current share price, which is one of the highest multiples paid in our industry to date, taking into account recent large transactions, and we believe this multiple fairly reflects the intrinsic value of Perrigo," Coury said

The offer and withdrawal rights are scheduled to expire on Nov. 13 unless the offer is extended with the consent of the Irish Takeover Panel. The acceptance condition for the offer requires that more than 50 percent of Perrigo ordinary shares be tendered to the deal.