Mumbai, Aug 28 (IANS) To boost up its presence in the emerging US pharmaceutical market, generic drug maker Mylan Laboratories Inc, is set to buy 71.5 percent of the Hyderabad-based Matrix Laboratories Ltd for more than $735 million.
Informing the Bombay Stock Exchange Monday, Matrix Laboratories Ltd said US-based Mylan Laboratories Inc will acquire up to 71.5 percent of the company's shares for Rs.306 per share.
'Mylan will buy 51.5 percent of Matrix's stock and also make an open offer to Matrix's remaining shareholders to acquire up to an additional 20 percent,' said a Matrix statement here.
'Assuming the open offer is fully subscribed, the total purchase price is expected to be $736 million. Matrix will remain a publicly traded company in India and continue to operate independently,' the statement added.
'We believe this transaction creates greater growth opportunities for Matrix and its employees and also will allow us to accelerate our existing expansion plans in India and abroad,' said executive chairman of Matrix, N. Prasad, who will join Mylan's board of directors and executive management team.