Dr. Reddy's Laboratories intends to make a recommended public offer for OctoPlus N.V.
Dr. Reddy's and OctoPlus jointly announced that they have reached conditional agreement in connection with an intended public offer by Dr. Reddy's, or a wholly owned subsidiary of Dr. Reddy's, for all issued and outstanding ordinary shares in the capital of OctoPlus at an offer price of € 0.52 (cum dividend) in cash (the "Offer Price") for each OctoPlus share (the "Offer").
The Offer Price represents a premium of 30% over OctoPlus' most recent closing price and a premium of respectively 36%, 28% and 14% over OctoPlus' average closing price for the past three, six and twelve months. Dr. Reddy's offer price is also a significant premium over analyst estimates of OctoPlus valuation, excluding Locteron over the past 2 years. After the emergence of All Oral Hepatitis C treatments, the value of Locteron has eroded significantly.
The Offer values 100% of the issued and outstanding ordinary shares of OctoPlus at € 27.4 million.
The Executive Board and the Supervisory Board of OctoPlus fully support and unanimously recommend the Offer to OctoPlus' shareholders.
Mr. GV Prasad, CEO Dr. Reddy's comments; "We are happy to have an R&D base in the Leiden area and the acquisition gives us the ability to strengthen our technological capabilities in the areas of drug delivery."
Mr. Jan Egberts, CEO of OctoPlus comments; "We are proud of the confidence Dr. Reddy's has shown in our organisation. It reflects the success of the major operational and organizational improvements we have implemented over the past few years."
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