Blame it on the bullish stock market. Global drugmaker Mylan will now be forced shell out an additional Rs 236.37 crore to acquire 24.77% equity in the Hyderabad based Matrix Laboratories and get it delisted from Indian bourses.
Mylan currently holds about 71.2% in Matrix through MP Laboratories (Mauritius). N Prasad, the founder of Matrix, holds about 5% equity while the remaining is with the public.
To get Matrix delisted from Indian bourses and take full control of the company, Mylan had announced a plan to buy back shares totalling 24.77% of equity.
At the time of announcing the offer, the acquirer had indicated a price of about Rs 150 per share. However, through the reverse book building method, it has discovered a price of Rs 211 per share.
With this, the price for acquiring the shares has gone up by 40.66%, forcing Mylan to shell out more. At the newly discovered price, the acquirer will have to pay Rs 817.63 crore to buy 3,87,50,534 shares from the public.
While the open offer closed on May 29, the final settlement of the deals would be done on June 3.
With this acquisition, public shareholding in Matrix will fall below the threshold level of 10%, which makes listing mandatory. The company has an equity base of Rs 30.9 crore.
Mylan has been working on the idea of delisting Matrix for some time now. According to sources tracking Matrix, the move is because the global drugs major wants to better leverage Matrix’s assets to improve manufacturing capabilities with fewer regulatory hassles.
Once the delisting process is complete, Mylan is also likely to make changes to its strategy of shipping more work to the Indian facility.
