NEW YORK (The Deal) -- Despite months of pushback from the target, Mylan (MYL) - Get Mylan N.V. (MYL) Report announced on Friday that its shareholders have approved the company's proposed acquisition of Perrigo (PRGO) - Get Perrigo Co. Plc Report for $31.2 billion.
In Friday's statement, Hertfordshire, U.K.-based Mylan noted that the potential transaction received the approval of two-thirds of the votes cast and received support from over a majority of all ordinary shares outstanding. The company plans to launch its formal offer directly to Perrigo shareholders in the coming weeks.
Perrigo has been vocal about its objection to Mylan's proposal. On Friday, the Dublin-based specialty pharmaceutical company reiterated its opposition to Mylan's unsolicited offer. A statement by Joseph C. Papa, chairman of the target, noted that the offer undervalues Perrigo, dilutes its growth value and has governance risks. The company believes the majority of its shareholders will reject the proposal.
On Aug. 14, Institutional Shareholder Services Inc. recommended that Mylan shareholders vote against the unsolicited offer to purchase Perrigo for $75 per share in cash and 2.3 Mylan ordinary shares for each Perrigo share. ISS noted a number of concerns, including that it may take an extended period of time before the transaction becomes profitable.
Shares of Mylan were trading at $50.29, down 2.3%, on Friday afternoon.
Previously, the target of a $40 billion-plus takeover proposal from Teva Pharmaceutical Industries (TEVA) - Get Teva Pharmaceutical Industries Limited Sponsored ADR Report, Mylan announced in April that it intended to purchase Perrigo. At the time, many industry players felt that the offer represented a defensive move against Teva. However, Teva ended its pursuit of Mylan after the Israeli specialty pharma company purchased Allergan's (AGN) - Get Allergan plc Report generics business for $40.5 billion in late July, and Mylan's desire to own Perrigo turned out to be genuine and strong.
Perrigo manufactures, develops and distributes over-the-counter pharmaceuticals, nutritional products and active pharmaceutical ingredients. Though it is not considered a pure play generics company, it has been attractive to players in the segment. The Deal previously reported that Perrigo may be a potential buyer in the future of smaller companies within the generic niche, such as Impax Laboratories (IPXL) , Akorn Pharmaceuticals (AKRX) - Get Akorn, Inc. Report and Sagent Pharmaceuticals (SGNT) .
The company has been active on the mergers-and-acquisitions trail. Along with its statement about Mylan, Perrigo announced on Friday that it had completed its acquisition of leading OTC brands from GlaxoSmithKline (GSK) - Get GlaxoSmithKline plc Sponsored ADR Report in an all-cash transaction valued at roughly $224 million. The purchase will help enhance Perrigo's growing pan-European infrastructure, according to a statement by the company.
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