Barr to purchase Pliva for $2.2 billion, beating rival Actavis
Zagreb – In the bidding race between the Icelandic Actavis Group and US Barr Pharmaceuticals Inc. for the takeover of the Croatian biogenerics producer Pliva d.d., the company ultimately opted for Barr’s offer. Both companies’ offers have been carefully reviewed by Pliva’s Supervisory and Management Boards, who have been advised by Deutsche Bank.
Under the terms of Barr’s proposal, Pliva’s shareholders will receive HRK705 (Euro99) in cash for each Pliva share held. Shareholders will additionally be entitled to a dividend of HRK12 (Euro1.70) per share, which values the whole deal at some $2.2 billion (Euro1.7 billion). The proposal is conditional upon antitrust approvals in Germany and the US. Barr’s offer price represents a 81-percent premium to Pliva’s average share price of HRK389 (Euro54.50) per ordinary share for the twelve months to 16 March 2006, the day before Pliva received the initial indicative non-binding proposal from Actavis of HRK 630 (Euro88) per Pliva share.
The combination of Pliva and Barr will expand geographic coverage and create a global pharmaceutical giant with annual revenues of about $2.5bn (Euro2bn).
The enlarged company will have a fully integrated generics platform with manu-facturing, development and marketing expertise, with a low-cost manufacturing base situated in eastern Europe and an extensive European and North American distribution and sales network.