CANONSBURG (dpa-AFX) - Mylan Inc. (MYL) disclosed in a regulatory filing that Mylan Inc., New Moon B.V., a private limited liability company organized under the laws of the Netherlands or 'New Mylan', Moon of PA Inc. or 'Merger Sub', and Abbott Laboratories (ABT), reached an amendment in connection with pre-closing actions required to be taken pursuant to the Business Transfer Agreement and Plan of Merger, dated as of July 13, 2014, among Mylan, New Mylan, Merger Sub and Abbott that provides for the acquisition by New Mylan of Abbott's non-U.S. developed markets specialty and branded generics business and of Mylan.
As per the Transaction Agreement, affiliates of New Mylan and Abbott agreed to enter into certain manufacturing arrangements at the closing of the Transaction.
Mylan stated that the Amendment adjusts, in a manner that is more favorable to New Mylan and its affiliates, the pricing terms under the arrangements pursuant to which, after closing, affiliates of Abbott will manufacture and supply products for affiliates of New Mylan.
The Amendment is expected to result in additional accretion to Mylan.
As previously disclosed, the Transaction is expected to be immediately and significantly accretive to Mylan.
The Amendment also increases to 110 million the number of New Mylan ordinary shares to be issued to affiliates of Abbott at closing. As a result, upon closing, the former shareholders of Mylan will own approximately 78% of the outstanding New Mylan ordinary shares and Abbott and its affiliates will own approximately 22% of the outstanding New Mylan ordinary shares.
Mylan continues to expect that the Transaction will close in the first quarter of 2015, subject to certain closing conditions, including regulatory clearances and approval by Mylan's shareholders.
In July, Abbott Laboratories said it would sell its branded generics pharmaceuticals business in developed markets to drugmaker Mylan for about $5.3 billion. A newly formed entity wpuld combine Mylan's existing business and Abbott's developed markets pharmaceuticals business, and will be a publicly traded company. As per the terms of the agreement, Abbott would sell its generics business in developed markets to Mylan for 105 million shares or about 21 percent, on a fully diluted basis.
Copyright RTT News/dpa-AFX