Under the transaction, Mylan would purchase a 51.5 per cent stake in Matrix for Rs 306 per share pursuant to an agreement with certain selling shareholders.
It would acquire shares of Matrix, which are currently owned by Temasek (Mauritius) Pvt Ltd, entities controlled by Newbridge Capital (a joint venture between Texas Pacific Group and Blum Capital Partners) and Spandana Foundation.
Mylan would also purchase shares from the company's executive chairman N Prasad, following which Prasad would retain a 5 per cent stake in Matrix.
In addition to the above, an open offer to Matrix's remaining shareholders would be made by Mylan for acquiring up to a 20 per cent stake in the company for Rs 306 per share.
Matrix's executive chairman N Prasad, who will join Mylan's board and executive management team said, "Our strategic vision remains unchanged and we believe this transaction creates greater growth opportunities for Matrix and its employees and also will allow us to accelerate our existing expansion plans in India and abroad."
The deal would be funded by using Mylan's existing revolving credit facility and cash on hand. A portion of the funds received by Newbridge, Temasek and Prasad would be used to purchase newly issued shares of Mylan's common stock. Prasad added, "Together, our companies will be able to compete more effectively, while delivering cost savings to our customers."