US-based specialty healthcare firm Endo International has unveiled plans to acquire all the outstanding shares of common stock of Salix Pharmaceuticals for $11.2bn.
Endo proposed negotiated cash and stock transaction involves acquiring all of the outstanding shares of Salix common stock for per share consideration of 1.4607 shares of Endo common stock and $45 payable in cash at closing.
Under the closing price of Endo common stock on 10 March, the stock portion of the proposed consideration is worth $130 per Salix common share, for a total per share value of $175.
Endo plans to close the deal in the second quarter this year, if a negotiated transaction is being agreed by Salix.
The proposal represents an 11% premium over the purchase price to be paid to Salix stockholders pursuant to the Valeant merger agreement.
In February this year, Valeant Pharmaceuticals International signed an agreement to acquire Salix for $158 per share or an enterprise value of $14.54bn.
In response to Endo’s unsolicited offer, Valeant said: "We are firmly committed to our all-cash agreed transaction, which delivers immediate and certain value to Salix shareholders.
"The tender offer is scheduled to expire at the end of the day on 31 March 2015, and Valeant expects to be in the position to close the transaction on 1 April 2015."
Based in Raleigh of North Carolina, Salix develops and markets prescription pharmaceutical products and medical devices to treat gastrointestinal diseases.
Holding a significant share in gastrointestinal market, Salix produces 22 products, including prescription brands such as Xifaxan, Uceris, Relistor, and Apriso.
The company will in-licence the late-stage or marketed proprietary therapeutic products and commercialises them, through completing the development and regulatory submission of the products if required.