Since HANFA on August 10 approved the publishing of a bid for the takeover of Pliva by the US company Barr, Actavis' offer will be considered a rival offer in line with relevant legislation.
Barr offered 743 kuna per share in its takeover bid.
Also on Thursday, Actavis Group (ICEX: ACT), the international generic pharmaceutical company issued a press release announcing that it has increased its offer to acquire the Croatian pharmaceutical company.
According to the press release, "under the terms of Actavis' increased offer, PLIVA shareholders will receive HRK795 per share in cash, in addition to the HRK12 per share dividend determined by PLIVA, representing a total cash payment of HRK807 per share. The funds required for Actavis' offer are fully committed through financing arranged by Actavis' bankers, JP Morgan, HSBC, UBS, Landsbanki and Glitnir, consist of a mixture of equity, loan facilities and a preferred security. In connection with the offer, Actavis has also secured shareholder approval for an equity increase of 300 million shares."
"The Board of Actavis believes that its revised offer represents a full and fair price for PLIVA and provides PLIVA shareholders with an immediate and tangible return on their investment. In addition, the Actavis offer provides the following significant economic and industrial benefits for PLIVA's business and for the Croatian economy," Actavis' press release reads.
"The increased offer values the total issued share capital of PLIVA at approximately US $2.5 billion. In addition, Actavis also confirms that it now controls a total of 20.8% of PLIVA's share capital through a combination of share ownership and options to acquire shares."
The Icelandic company also assesses that its revised offer "is 7.0% higher than the competing offer of HRK743 per share made for PLIVA by Barr Pharmaceuticals Inc."
In the lengthy press release, Actavis states, among other things. that "completion of the tender offer is conditional only upon Actavis receiving acceptances that result in it holding more than 50% of PLIVA's outstanding issued share capital."
The U.S. based Barr Pharmaceuticals, Inc. (NYSE: BRL) on Thursday stated that it "was evaluating the competing bid announced today by Actavis Group to purchase PLIVA d.d. (LSE: PLVD; ZSE: PLVA-R-A), based in Zagreb, Croatia for $2.5 billion, or HRK 795. The Company said that it will respond appropriately in a timely manner, but no later than September 8, 2006."
"The Company's current bid of $2.3 billion, or HRK 743, in cash was formally published in the "Official Gazette" on August 18, 2006, initiating the Company's 30-day tender process. On August 31, 2006, a competing bid by Actavis Group was approved by HANFA for publication. As a result, upon filing proper documentation, Barr's tender period is now expected to close 30 days following the publication of Actavis' bid in the "Official Gazette".
"Barr reiterated that its potential acquisition of PLIVA represents a venture of extraordinary potential and the benefits of this combination will only increase over time. The combination represents an exceptional opportunity to combine two largely complementary product portfolios and R&D capabilities, creating a leader with a broad portfolio of solid oral dosage forms, extended and delayed release products, injectables, creams/ointments and biopharmaceutical products. The PLIVA name and Croatian-based operations will become the headquarters for the European operations and the European facilities will offer Barr the opportunity to move manufacturing of select products to Croatia, increasing both production and employment at the Croatian and other European facilities," the U.S company said, among other things.