Mylan Labs to acquire Matrix Labs for $736 million

28 August 2006

The acquisition is being made at a price of Rs306 per share of Matrix. Depending on the success of the open offer, total cost to Mylan could be up to $736 million. There are no plans to de-list Matrix Labs from the domestic stock exchanges.

N Prasad, current chairman and promoter of Matrix, would sell part of his stake to Mylan, but would retain a 5 per cent stake in the company. He will join Mylan as director and a member of the executive management team as head of global strategies. N Prasad will invest $25 million in newly issued shares of Mylan.

Financial investors in Matrix, Temasek Holdings and Newbridge capital, have also agreed to sell out to Mylan. Subsequent to the completion of the deal, Newbridge and Temasek will invest $93 million and $46 million respectively in newly issued shares of Mylan Labs.

The current CEO of Mylan would become the non-executive chairman of Matrix and N Prasad, currently executive chairman of Matrix, would become the vice-chairman of the board. Rajiv Malik would remain as CEO of Matrix.

N Prasad and associates held a 17-per cent stake in Matrix as on 30 June 2006. Three entities controlled by Newbridge Capital held more than 25 per cent while Maxwell Mauritius, an arm of Temasek Holdings, held close to 13 per cent.

Among other investors, Merrill Lynch held more than 5 per cent while Goldman Sachs and Master Trust Bank of Japan held more than a per cent each as on 30 June 2006.