Barr Pharmaceuticals, Inc. announced, that the Croatian Financial Services Supervisory Agency (HANFA) has approved for publication, its tender offer for the purchase of 100 per cent of the shares of Pliva d.d. based in Zagreb, Croatia.
Under the terms of the formal $2.3 billion cash tender offer, Pliva shareholders who tender their shares will receive HRK 743 per share in cash. In addition, shareholders that are registered as shareholders at the Central Depository Agency as of August 22, 2006 will receive the dividend of HRK 12 per share, for a total cash consideration of HRK 755 per share.
In accordance with Croatian takeover law and HANFA instructions, Barr anticipates that its formal offer will be published in major Croatian newspapers, including the official Gazette, at the earliest possible time. The publication of the company's offer in the official gazette initiates the formal tender process, which is expected to take a minimum of 30 days following publication in the official gazette and up to 60 days from the date that a competing bid is approved for publication by HANFA.
The Company's ability to close its tender offer is only conditioned upon Barr receiving acceptances that result in the Company holding more than 50per cent of PLIVA shares.
"We are pleased that HANFA has approved our $2.3 billion cash tender offer proposal and we have undertaken the formal process of informing all shareholders and will initiate the formal tender process following publication in major Croatian media, as soon as possible," stated Bruce L. Downey, Barr's chairman and CEO. "We recognize that the acquisition of Pliva is a lengthy and well-orchestrated process. We also are aware that according to HANFA's website, Actavis has filed a bid for review by HANFA. As we have stated in the past, we understand that this is a competitive process, and we intend to be fully engaged until its successful conclusion. We intend to evaluate and maximize all appropriate opportunities to succeed in this process. We believe that the combination of Barr and Pliva represents a venture of extraordinary potential and that the benefits of this combination will only increase over time."
"We are confident that as our message and the value of the combined company becomes clear to Pliva investors, that we will be successful in this bid, and create a new company, the world's third largest global generic pharmaceutical company, where the value of the combined business will continue to grow," Downey continued. "We encourage all Pliva investors to become completely acquainted with the terms of our offer, as formally published, so that they can make an educated decision regarding our tender offer and possibly consider an investment in the combined company, if Barr is successful."