Mylan acquires 51.5% in Matrix

US-based Mylan Laboratories Inc has acquired around 51.5 per cent stake in pharmaceutical company Matrix Laboratories for Rs 306 per share.

With the completion of the deal, M P Laboratories (Mauritius) Ltd, a wholly-owned subsidiary of Mylan, now owns about 71.5 per cent stake in Matrix as it had earlier acquired 20 per cent through an open offer.

The acquisition was as per a share purchase agreement, Matrix informed the Bombay Stock Exchange. The selling shareholders include executive chairman N Prasad, India Newbridge Investments Ltd, Maxwell (Mauritius) Pte Ltd and Spandana Foundation.

"Today's announcement marks the successful closing of the Matrix transaction, and the beginning of a new era at Mylan," company CEO Robert J Coury said.

Newbridge and Maxwell have invested a portion of their proceeds in Mylan common stock, while N Prasad would invest Rs 112 crore ($25 million), in a transaction likely to be completed by the end of this month.

If shareholdings maintained by N Prasad are included, Mylan would have more than 75 per cent in Matrix.

The board of Matrix has also been reconstituted with Robert J Coury taking up as Non-Executive Chairman. The size of Mylan's board of directors has been increased to ten members and N Prasad appointed to the Mylan Board.

He will serve as non-executive vice chairman of the Matrix board and head of global strategies in the office of the CEO at Mylan.

Mylan also announced the establishment of an Asian headquarters in Singapore, where N Prasad and several members of his team will be located.