Vectura Agrees to $1.33 Billion Carlyle Takeover; Withdraws Philip Morris Recommendation -- Update

   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Murano Bidco Ltd., a new company indirectly controlled by funds managed by Carlyle Europe Partners V, and has therefore withdrawn its recommendation for Philip Morris International Inc.'s proposal.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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