Mylan to obtain 71.5% interest in India's Matrix Laboratories for $736M

Pennsylvania, USA-based pharmaceutical firm Mylan Laboratories and India's Matrix Laboratories say that they have entered into an agreement under which the US group will purchase up to 71.5% of Matrix' outstanding shares for 306 rupees per share. The companies added that, following the completion of the transaction, Matrix would maintain its position as a publicly-traded company on the Indian market, and would continue to operate on an independent basis.

Under the terms of the deal, which is expected to be accretive to Mylan in the financial year 2008, the Pittsburgh-headquartered firm will acquire 51.5% of Matrix's outstanding shares pursuant to an agreement with certain selling shareholders, including Temasek, Newbridge Capital, Spandana and the group's executive chairman N Prasad. Mylan added that it would make an additional "open offer" to the the Hyderabad-based company's remaining shareholders to buy up to a further 20%. The firms added that, assuming that the offer is fully subscribed, the total purchase price is expected to be around $736.0 million.

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