Thursday May 31, 11:29 am Eastern Time
Ivax launches $395 mln LabChile tender offer
(UPDATE: Updates with background, details throughout)
SANTIAGO, Chile May 31 (Reuters) - Miami-based generic drug maker Ivax Corp. (AMEX:IVX - news) on Thursday launched a $395 million cash tender offer for Chile's No. 1 pharmaceutical company, Laboratorio Chile (NYSE:LBC - news), LabChile said.
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The previously announced offer for 100 percent of the Chilean firm, which Ivax first announced on May 21, was launched simultaneously in Chile and the United States and runs until noon local time (1600 GMT) on June 29.
Deutsche Securities brokerage is coordinating the local offer.
Ivax is offering $1.25 a share, (about 760 pesos a share when the offer was first announced), or $25 per American Depositary Receipt, for the Chilean company.
Local analysts said the offer was reasonable and reflected the value of LabChile. However, traders in Santiago said the offer is below the 820 pesos per share expected by local pension funds and insurance companies that control about 26 percent of LabChile.
In an Ivax statement and a full-page advertisement in Chilean daily El Mercurio on Wednesday, Ivax said the purchase would be paid in Chilean pesos , based on the level of the local currency published by the central bank on the next working day after the deal is completed. The peso has slipped to record lows of around 610 to the dollar in recent sessions
The acquisition of LabChile, which is also one of the largest drug companies in Argentina and Peru, would expand the U.S. giant's distribution network throughout Latin America.
Ivax, which already operates in Argentina, Mexico, Peru, Uruguay and Venezuela, aims to become a major player in Latin America. It has said the acquisition of LabChile will immediately add to its earnings.
LabChile had revenues of $173 million last year and posted a first-quarter 2001 net profit of 4.065 billion pesos, up from 2.980 billion pesos in the same period last year.
In October 2000, Ivax agreed to acquire Mexican drug company Laboratorios Fustery for an undisclosed amount of cash and IVAX common stock. Fustery had 1999 net revenues of about $80 million.
Shares in LabChile were unchanged at 751 pesos Thursday on the Santiago bourse, while its ADRs fell 2 cents to $24.70 on the New York Stock Exchange.
Ivax shares rose 37 cents to $32.94 on the American Stock Exchange.
($1 equals 610 pesos) |
