Shire willing to back Takeda’s sweetened US$64b takeover offer
LONDON/NEW YORK/TOKYO: Rare disease drugmaker Shire Plc said yesterday it was willing to recommend a sweetened US$64 billion (RM250.45 billion) offer from Japan’s Takeda Pharmaceutical Co to shareholders, in what could be the biggest acquisition of a drug company this year.
But shares in Takeda tumbled further yesterday, losing seven per cent as investors fretted over its ability to buy a company twice its size. Its stock slide — 18 per cent since the news of a possible bid broke — also makes the cashand-share deal less appealing to Shire shareholders.
The latest development comes after London-listed Shire rejected four previous offers from Takeda and will leave Shire shareholders owning half of the combined company.
The fifth offer is worth £49.01 (RM267.47) per share, comprised £27.26 per share in new Takeda shares and £21.75 per share in cash.
That represents a 4.3 per cent premium to Takeda’s fourth proposal on April 20 and an 11.4 per cent premium to its first approach on March 29.
Shire, a member of Britain’s benchmark FTSE 100 stock index, said its board agreed to extend a regulatory deadline, which should end yesterday, to May 8 so Takeda can conduct more due diligence and firm up its bid. Shire added the deadline may be extended further if needed.
Any deal is subject to the resolution of several issues, including completion of due diligence by Shire on Takeda, the Dublinbased company said.
A deal would boost Takeda’s position in gastrointestinal disorders, neuroscience, and rare diseases, including a blockbuster hemophilia franchise.
If successful, it would be the largest overseas acquisition by a Japanese company and propel Takeda , led by Frenchman Christophe Weber, into the top ranks of global drugmakers.