Mylan makes exit offer of Rs 211/share for Matrix Labs

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Mylan makes exit offer of Rs 211/share for Matrix Labs

Mylan made and exit offer at a price of Rs 211 per share for Matrix Labs. The company will accept all tendered shares at that price and will get over 90% stake in Matrix Labs.

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Mylan made and exit offer at a price of Rs 211 per share for Matrix Labs . The company will accept all tendered shares at that price and will get over 90% stake in Matrix Labs. CNBC-TV18's Anuj Singhal reports in detail.

Also Read: Matrix Labs to sell 49% share rights in Astrix to Mylan

Here is a verbatim transcript of Anuj Singhal's comment on CNBC-TV18. Also watch the accompanying video.

Mylan made an exit offer for Matrix Labs share holders. Interestingly the lower price was to be at about Rs 92. however, about two weeks back, Mylan had come out and said that there was an indicative price of about Rs 150 per share and couple of days later had clarified that indicative price does not mean that they will not accept shares at higher price and they could accept shares at higher price.

In Thursday's trade, there was a big surge in Matrix stock-it was up about 15% with very good volumes and on that day you could see on the BSE website where the reverse book building was there that about Rs 1.5 crore shares were offered at Rs 211 per share. That was just short of what Mylan needed to take its holding to above 90%. There were some shares offered at Rs 181 per share and also at Rs 170 per share.

Thus, in that sense, with Mylan deciding that Rs 211 per share is acceptable to them, they will have enough to take it past 90% and once that happens, they can go ahead and delist the company even if the minority shareholders of about 8-9% decide to keep their shares, Mylan as per laws can go ahead and delist this company.

Last traded price was about Rs 126 and that too because over the last couple of days we have seen big surge in Matrix stock. With Matrix being a Mylan subsidiary, it is now one of the MNC pharmas out of the way. As we have been focusing on pharma companies, there are couple of more companies to focus on going forward. One is Novartis and the other is Pfizer. Now with Mylan and Matrix Labs saga out of the way, I think the focus will come back to these two stocks going forward that is Pfizer and Novartis.