Mylan Inc has decided to purchase all remaining 45 million shares of Matrix Laboratories from minority shareholders and planning to delist it from Bombay Stock Exchange and National Stock Exchange. Mylan, through a wholly-owned subsidiary, currently owns approximately 71.2 per cent of Matrix and controls more than 76 per cent of its voting rights. After the proposed offer, Mylan's holding will exceed 90 per cent of all outstanding shares.

Mylan vice chairman and CEO Robert J Coury commented, "Purchasing the remaining interest in Matrix and delisting it from the exchanges will provide Mylan an opportunity for enhanced flexibility and efficiencies in managing our global technical and commercial operations platform. This move represents another step toward achieving our goal of becoming the most efficient global generics and specialty pharmaceutical company in the industry. The transaction also would provide Matrix's public shareholders with an attractive near-term liquidity opportunity."

Mylan has approved an indicative acquisition price of up to Rs 150 per share. This price reflects a premium of 27 per cent of the closing share price of Matrix on March 26, the last trading day before the announcement. It also represents a premium of 54 per cent and 77 per cent over Matrix's average share price during the last month and last six months, respectively.

The delisting process is expected to take approximately 12 weeks subject to obtaining regulatory approvals. If Mylan acquires remaining stake, the aggregate purchase price will total approximately $133 million. Mylan intends to fund the purchase using current cash balances.