Completion of the deal is expected within a few days. Teva will pay $2 billion in cash and $1.4 billion in shares for SICOR.
The US Federal Trade Commission (FTC) has consented to an early termination of the required waiting period for the acquisition by Teva Pharmaceuticals (Nasdaq: TEVA; TASE:TEVA) of Californian company SICOR (Nasdaq: SCRI). It is now expected that the acquisition will be completed within the next few days. Teva agreed to pay $3.4 billion for SICOR, $2 billion in cash and the remainder in shares.
The FTC's consent follows the approval of the acquisition by SICOR's shareholders on Friday. The merger was approved by nearly all of the votes cast. The companies' announcement stated, on the basis of preliminary results, that out of the 82.7 million shares voted, approximately 99.8 percent were voted in favor of the merger.
Teva has obtained financial coverage from Bank Hapoalim and Bank Leumi for the merger. SICOR's seven shareholders will receive a 7% stake in Teva.
The merger is the largest ever undertaken by Teva, indeed the largest ever by an Israeli company. It involves a degree of risk: the price Teva is paying for SICOR refelects a multiple of 6 on sales and 30 on profit, and the deal will use up all of Teva's cash, and will require further financing. SICOR moreover derives 22% of its revenue from a single product, the sedative Propofol.
Published by Globes [online] - www.globes.co.il - on January 18, 2004