Mylan Offers $205 per Share for Perrigo (PRGO)

Shares of Perrigo Company Plc (PRGO) were trading up +6.99 or +3.58 percent to $201.99 per share in Thursday's premarket after Mylan Inc. (MYL) made a bid of $205 per share in cash and stock for the company yesterday. Perrigo stock closed at $195.00 per share, up +30.29 or +18.39 percent in Wednesday's regular trading session.

Dublin, Ireland based Perrigo Company Plc was founded in 1887 in Allegan, Michigan was originally founded as a packager of generic home remedies.
The company has grown to become the world's largest manufacturer of over the counter pharmaceutical products and supplier of infant formula to the store brand market. Perrigo also is a major provider of extended topical prescription products and operates primarily in Australia, Europe, North America, Mexico, Israel and China.

Cecil Township, Pennsylvania based Mylan Inc. is the second largest generic and specialty pharmaceutical company in the world and a major producer and supplier of active pharmaceutical ingredients for generic drug products. The company has a portfolio of 1,400 generic pharmaceuticals and markets its products in approximately 145 countries and territories, employing roughly 30,000 people worldwide. Mylan Inc. is a major provider of antiretroviral therapies supplying about 40 percent of HIV/AIDS patients in developing nations.

The non-binding proposal sent to Perrigo's Chairman and Chief Executive Officer, Joseph C. Papa on Monday specified that Perrigo shareholders would receive $205 per share in a combination of cash and stock for each Perrigo share, a premium of +25 percent over Perrigo stock's closing price on April 3rd and a +28 percent premium over the stock's average price over 90 days. The amounts of cash and stock were not specified.

A statement issued by Mylan's Executive Chairman Robert J. Coury stated that, "This proposal is the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination. This combination would result in meaningful immediate and long-term value creation, and our proposal is designed to deliver that value to shareholders and other stakeholders of both companies. We have great respect for Perrigo's board and management team and what they have built. We look forward in the weeks ahead to working with them to capitalize on this tremendous opportunity and working together to create a unique leader with a one-of-a-kind profile in our industry.

Perrigo answered the letter sent on Monday in a press release dated April 8th, in accordance with Rule 2.4 of the Irish Takeover Panel Act of 1997. The announcement confirmed that the company had received an unsolicited, indicative proposal from Mylan and stated that the Perrigo board would meet to discuss the $29 billion bid and that no certainty that an offer would be made.

The deal will be Mylan's largest and another major consolidation for the pharmaceutical industry. Last year, Mylan acquired Abbot Laboratory's (ABT) non-U.S. operations for $5.3 billion in a plan to move its domicile to the Netherlands. Perrigo acquired Elan Corp. in 2013 and successfully moved its domicile to Dublin, Ireland. Nevertheless, both companies continue running operations from their headquarters in the United States. News of the deal sent both stocks soaring yesterday, with Perrigo stock trading as high as $211 per share and closing at $195, up +18 percent, while Mylan shares rose to a new record high of $68.36 per share, up $9.40 or +16 percent.

Other News About PRGO

Mylan's bid for Perrigo leading to a $700 million payday for Abbott Labs

Abbot Laboratories owns 75 million shares or 15.4 percent of Mylan.

Perrigo Company plc Completes Acquisition Of Omega Pharma Invest N.V., Creating A Top Five Global OTC Company

Perrigo acquired Belgian based Omega Pharma Invest for 3.8 billion euros on March 30th.

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Published on Apr 9, 2015
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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