Advertisement Salix accepts Valeant's revised $173 a share cash deal, Endo withdraws - Pharmaceutical Business review
Pharmaceutical Business review is using cookies

ContinueLearn More
Close

Salix accepts Valeant’s revised $173 a share cash deal, Endo withdraws

Salix Pharmaceuticals has accepted a revised takeover offer price of $173 per share in cash, or a total enterprise value of about $15.8bn from Valeant Pharmaceuticals International, leading the only other bidder Endo International to withdraw.

Agreement,

Valeant’s new offer of $173 a share, is an increase from a bid of $158 per share in cash made this February.

The revised share offer, which adds about $1bn in cash for Salix stockholders, will be available through 7 April 2015.

Earlier this March, Endo said it would pay $175 per Salix share, which will include 1.4607 of its shares plus $45 in cash.

In a statement Endo noted: "While we are disappointed with this outcome, we have been and will continue to be disciplined in our approach to potential acquisitions.

"We would like to wish Salix and Valeant continued success as they move forward with their transaction. As a next step, Endo is focusing our attention on other opportunities in our robust deal pipeline and on maximizing our organic growth initiatives including progressing our R&D pipeline.

"We will continue to drive Endo’s growth as a global leader in specialty pharmaceuticals and look forward to creating value for our shareholders while improving patients’ lives."

As per the amendment, the termination fee Salix would have to pay to walk away from the deal was increased to $456m from $356m and the outside date after which either party may terminate the deal has been moved from 20 August to 1 May.

Valeant chairman and chief executive officer Michael Pearson said: "This revised offer provides Salix shareholders with all-cash at a significant premium and the certainty to close by April 1.

"By offering a significant premium with a 100% cash offer, eliminating market and company equity risk that could arise from other non-cash offers with a 4+ month closing timeline instead of a closing by April 1st, our new arrangement creates significant shareholder value for Salix.

"In addition, the transaction remains modestly accretive in 2015 and will be more than 20% accretive in 2016."


Image: Salix accepts Valeant’s $173 a share cash deal. Photo: courtesy of FreeDigitalPhotos.net / Wagging DogMedia Limited.