Online BusinessMatrix assigns its right to buy Astrix stake to Mylan unit
Matrix Laboratories Ltd, a subsidiary of the US-based generics drugmaker, Mylan lnc, has assigned its right to purchase 1 per cent equity in Astrix Laboratories Ltd to Mylan Luxembourg, another subsidiary of Mylan.
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Astrix is an India-based 50:50 joint venture between Matrix and Aspen Pharmacare Holdings Ltd of South Africa. Earlier, Matrix and Aspen had signed an agreement which said that Aspen would divest its stake in Astrix to Matrix.
In January 2009, Matrix announced the assignment of a portion of its right to acquire Aspen"s stake in Astrix to MP Laboratories (Mauritius) Ltd, a wholly-owned subsidiary of Mylan.
Pursuant to this assignment, MP Labs has to purchase Aspen’s stake in Astrix to the extent of 49 per cent and Matrix has to purchase the remaining 1 per cent, thereby increasing its stake in the joint venture to 51 per cent.
As part of its planned growth strategy, Matrix had agreed to purchase the 49 per cent equity shares in Astrix from MP Labs within a two-year period. With this, Astrix would be wholly-owned by Matrix.
However, Matrix stated in a release that obtaining regulatory approvals for acquiring a majority stake in Astrix was taking time. Hence, it had signed the right to acquire the balance 1 per cent in Astrix to Mylan Luxembourg. After regulatory approvals, Matrix would purchase this stake from the Luxembourg wholly-owned outfit of Mylan.
Mylan Inc, which currently holds 71.2 per cent in Matrix through MP Laboratories (Mauritius) Ltd, came out with a public offer in the first week of this month to buy back the remaining 24.8 per cent equity in Matrix at an indicative price of Rs 150 per share. Mylan plans to delist the Indian drug maker from the domestic bourses following the buyback.
After the buyback, Matrix would become a wholly-owned subsidiary of Mylan.