Vectura Agrees to $1.33 Billion Carlyle Takeover; Withdraws Philip Morris Recommendation -- Update
August 06 2021 - 11:12AM
Dow Jones News
By Ian Walker
Vectura Group PLC said Friday that it has agreed to a 958
million-pound ($1.33 billion) takeover by Murano Bidco Ltd., a new
company indirectly controlled by funds managed by Carlyle Europe
Partners V, and has therefore withdrawn its recommendation for
Philip Morris International Inc.'s proposal.
Under the offer, accepting shareholders of the U.K.
pharmaceuticals business will get 155 pence in cash for each share
held, a 3.3% premium to Philip Morris's previously agreed takeover
of 150 pence.
Vectura shares at 1447 GMT were up 9.60 pence, or 6.2%, at
163.60 pence.
Vectura, which specializes in inhaled medicines, said the
Carlyle bid offers better value to shareholders than Philip
Morris's and also puts the company in a better position to meet its
current strategy.
Carlyle said that Vectura will continue to play a part in the
U.K. life sciences community as part of the government's ambition
for the sector. It added that the company already has all
regulatory approvals so the only conditions of the offer are for
Vectura shareholders to approve the deal and for court
sanction.
Documentation for the deal is expected to be published as soon
as possible and both court and shareholder meetings are expected to
be called for Aug. 24, the companies said.
Vectura said that its business continues to perform in line with
management's expectations but that revenue growth this year has
been slower than expected, saying uncertainty over the company's
ownership is hurting its second-half performance.
"Whilst we remain confident in the long-term fundamentals of the
Vectura Group, we believe this is a highly attractive offer for
Vectura shareholders, which secures the delivery of future value in
cash, with no regulatory contingencies to completion," Vectura
Chairman Bruno Angelici said.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
August 06, 2021 11:10 ET (15:10 GMT)
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