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Re: DewDiligence post# 193732

Monday, 07/27/2015 9:00:12 AM

Monday, July 27, 2015 9:00:12 AM

Post# of 250831
TEVA’s acquisition of AGN’s generic-drug business is official:

Allergan will receive $33.75 billion in cash and shares of Teva valued today at $6.75 billion, representing an estimated under 10% ownership stake in Teva, with the number of Teva shares determined based on Teva’s volume weighted average trading prices during the 15 days prior to the announcement and five days following the announcement.

…The transaction was unanimously approved by the Boards of Directors of Teva and Allergan and is expected to close in the first quarter of 2016.

In other words, the nominal deal value of $40.5B (less than the $45B reported over the weekend) is 83% in cash and 17% in TEVA stock. TEVA is paying a steep price of 17x EBITDA for AGN’s generic-drug business.

After this transaction closes, AGN will have net debt close to zero, and it can thereby resume its aggressive acquisition of other brand-drug companies.

AGN's sale does not include the FoB program partnered with AMGN (#msg-70097496).

As a consequence of the TEVA-AGN deal, TEVA has dropped its hostile pursuit of MYL (who remains committed to its own hostile takeover of PRGO).

TEVA held a CC at 8am ET today.

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