Elan shareholders will receive $6.25 in cash and 0.07636 shares of New Perrigo for each Elan share. The transaction values each Elan share at $16.50 based on the closing price of Perrigo shares on 26 July 2013, which represents a premium of ~10.5% compared to the closing price of Elan American Depositary Shares on 26 July 2013, the last trading day prior to the date of this announcement. The transaction values the entire share capital of Elan at ~ $8.6 bln based on Perrigo's closing share price on 26 July 2013. Net of cash, the transaction is valued at $6.7 bln. Perrigo shareholders will receive one share of New Perrigo for each share of Perrigo that they own upon closing and $0.01 per share in cash.Immediately after the closing of the transaction, Perrigo shareholders are expected to own ~71% of the combined company while Elan shareholders are expected to own ~29%. The combination is expected to result in more than $150 million of recurring after-tax annual operating expense and tax savings.
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