Mylan N.V. shares will be traded on the Tel Aviv Stock Exchange (TASE) starting on Wednesday when the company completes its dual-listing - immediately becoming one of the largest companies on the TASE.
Chairman Robert Coury will head a delegation of senior executives and ring the exchange's opening bell tomorrow. The pharmaceutical firm trades at a value of $22.5 billion on the Nasdaq and will become one of the three largest companies on the Tel Aviv 25 Index - after Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and alongside Perrigo Company (NYSE:PRGO; TASE:PRGO).
If the drug giant fails to complete its takeover of Perrigo, both companies' shares will continue trading on the exchange, and the Tel Aviv 25 Index will lean significantly on the American pharmaceutical industry.
Mylan is entering the Israeli exchange as part of its campaign to takeover Perrigo, which has been trading on the local exchange since purchasing Agis Industries ten years ago.
Mylan's acquisition offer for Perrigo's shareholders includes stock compensation; as a dual-listed company it is also exempt from publishing the prospectus approved by the Israeli Securities Authority.
Part of the battle between the drugmakers has spilled into the legal arena. Last week Perrigo's petition for an injunction was denied, allowing Mylan to continue its TASE listing.
During his visit, Coury will meet with Perrigo investors, hoping to sway them to accept the buyout offer.
Mylan's offer includes payment of 2.3 of its shares and $75 in cash for each Perrigo share - close to $180, a 13% premium over its current price.
As of today, the potential value of the deal totals $26.5 billion. Perrigo's leadership harshly object to the buyout offer and have recommended to shareholders to reject it. The offer is valid until November 13.
Perrigo chairman and CEO Joseph Papa sent another letter to shareholders on Tuesday in which he claimed Mylan was purposefully misleading them to sell their stock. He claimed there would be devastating consequences to the value of their investment. He urged shareholders to ignore Mylan's overtures and reject an unsatisfactory offer.
Papa told Perrigo shareholders that Mylan had been summoned by the US Securities and Exchange Commission (SEC) in September over insufficient disclosure of real estate deals and charged that the competitor hid those proceedings for seven weeks.
In addressing the concerns of Israeli shareholders, Papa cast doubt on Mylan's commitment to Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2015
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