Mylan shares were down as much as 5.4 percent on Monday after the company announced an underwritten public offering of shares held by Abbott Laboratories. According to Mylan, the offering of ordinary shares represents 31.8 percent of Abbott's stake in the company, which Abbott had acquired from the sale of its developed markets branded generics drug business to Mylan last July.
In the offering, Abbott will sell 35 million of its current Mylan holding of approximately 110 million shares, obtained under an amended version of the branded generics deal that gave Abbott a 22-percent stake in the company. Further, Abbott granted underwriters an option to buy up to about 5.3 million additional Mylan shares. If the option is exercised in full, Abbott's filing would represent 36.6 percent of its stake in the company.
Meanwhile, Mylan said it is not selling stock as part of the offering, and will receive no proceeds from the divestment. The company completed its acquisition of Abbott's non-US developed markets specialty and branded generics business last month.
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