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Our Bureau

Hyderabad , Jan. 9

Mylan Laboratories Inc has completed its acquisition of approximately 51.5 per cent of Matrix's outstanding shares for Rs 306 per share in cash pursuant to a share purchase agreement (SPA) with certain selling shareholders.

In the light of the previously-announced closing of the acquisition of 20 per cent of Matrix's outstanding shares under an open offer to Matrix shareholders, MP Laboratories (Mauritius) Ltd, a wholly-owned subsidiary of Mylan, now owns approximately 71.5 per cent of the voting share capital of Matrix.

The total deal value for acquiring 71.5 per cent equity at Rs 306 per share was approximately Rs 3,367 crore.

Including the Matrix shareholdings maintained by Mr Prasad Nimmagadda (Mr N. Prasad), which are subject to a voting arrangement with Mylan, Mylan now controls in excess of 75 per cent of the voting share capital of Matrix, which is engaged in the manufacture of active pharmaceutical ingredients (APIs) and solid oral dosage forms.

The selling shareholders under the SPA include Mr N. Prasad, the original lead promoter and certain of his affiliates, India Newbridge Investments Ltd (a joint venture between Texas Pacific Group and Blum Capital Partners) and its affiliates, Maxwell (Mauritius) Pte Ltd and Spandana Foundation.

Following the closing of the SPA, the Newbridge and Maxwell selling shareholders have invested a portion of their proceeds in Mylan common stock.

Mr N. Prasad has agreed to invest $25 million of his proceeds in Mylan stock, in a private transaction anticipated to close by the end of January, 2007, the two companies said in a press release on Tuesday.

In related developments, Mr Robert J. Coury, Mylan's Vice-Chairman and Chief Executive Officer, has been appointed non-Executive Chairman of the Board of Matrix Laboratories. Mr N. Prasad will serve as a non-Executive Vice-Chairman of the Board of Matrix and Head of Global Strategies in the Office of the CEO at Mylan.

Mylan also announced the establishment of an Asian headquarters in Singapore, where Mr Prasad and several members of his team will be located. The size of Mylan's Board of Directors has been increased to ten members, and Mr Prasad has been inducted.

Mr Coury commented, "Although today's announcement marks the successful closing of the transformational Matrix transaction, it also marks the beginning of a new era at Mylan where our organisation is continuing to expand beyond our well-established position as a leading domestic generic pharmaceutical company towards our objective of establishing Mylan as a world leader in generics and specialty pharmaceuticals."

More Stories on : Mergers & Acquisitions | Pharmaceuticals

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