Shire, Takeda Come to Terms on $62B Acquisition Deal

Shire, Takeda Come to Terms on $62B Acquisition Deal

The takeover would give Takeda a foothold in the market for rare-disease drugs.

Takeda put consistent effort to take over its bigger rival, Shire and had bid five times since March 27, 2018, improving the offer each time.

Under the offer, shareholders would receive the equivalent value of £49.01 per Shire share and also be entitled to receive any dividends announced, declared or paid by Shire in the ordinary course prior to completion of the deal without any consequential reduction in the consideration. The deal represents a 59.6 per cent premium to Shire's closing price before Takeda's interest emerged. When the deal closes, Takeda shareholders would hold approximately 50 percent of the combined company.

Shire's shares, which had been trading about 10 pounds below the value of Takeda's offer, traded four percent higher at just over 40 pounds, still well under the agreed price and indicating that shareholders still have reservations.

Tokyo-listed Takeda's shares, however, climbed nearly four per cent to ¥4,638 (£31.50).

Takeda has however obtained a $31 billion bridge loan to help finance the deal, a fact that had unnerved some investors before the deal's announcement.

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Takeda also set aside $9.1 million for retention bonuses to keep the services of some key personnel, which will double the pay and bonuses due to CEO Ornskov and CFO Thomas Dittrich. However, Takeda announced their intention to reduce the debt quickly.

Takeda's bid follows a series of worldwide acquisitions by the Japanese drug-maker as it seeks to make up for a slowing domestic market and take its place on the global stage among the largest pharma firms, including Pfizer.

Takeda chief executive Christophe Weber said: "Shire's highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda".

Susan Kilsby, chairwoman of Shire, said the takeover of her company - which is best known as the maker of Adderall, a treatment for ADHD, but has become one of the world's biggest makers of medicines for rare diseases - is in the best interest of shareholders. Another 20 percent will be in Japan and about 30 percent will be in other countries, she said.

Takeda has focused on developing and commercialising innovative therapies that address unmet clinical needs in gastroenterology, oncology and neuroscience plus vaccines.

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