Mylan completes Matrix's acquisition

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

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

Including the Matrix shareholdings maintained by its promoter Prasad Nimmagadda, which are subject to a voting arrangement with Mylan, the American company controls in excess of 75 per cent of the voting share capital of Matrix.

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

"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," Robert J Coury, Mylan's vice-chairman and chief executive officer, who has been appointed non-executive chairman to the board of Matrix, stated in a press release here.

Following the closing of the SPA, the Newbridge and Maxwell selling shareholders have invested a portion of their proceeds in Mylan common stock. Prasad too has agreed to invest $25 million of his proceeds in Mylan stock, in a private transaction anticipated to close by the end of January.

Prasad will serve as 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 Prasad and several members of his team will be located. The size of Mylan's board of directors has been increased to ten, and Prasad has been appointed to the Mylan Board.