Saturday 24 March 2018

Elan shareholders back €6.3bn takeover

John Mulligan

John Mulligan

SHAREHOLDERS in Irish pharmaceutical firm Elan have overwhelmingly backed the $8.6bn (€6.3bn) takeover of the company.

The investors were attending two meetings in Dublin this morning at which they voted on proposals to effect the acquisition of the company by US-based Perrigo.

Perrigo shareholders are also voting in the United States today on the proposed transaction.

Perrigo agreed in the summer to buy Elan after the Irish company had been pursued in a hostile takeover attempt by another US firm, Royalty Pharma.

The takeover of Elan by Perrigo will result in the Irish company delisting from the Irish Stock Exchange.

Elan put itself up for sale In June in a continuing effort to thwart Royalty’s hostile bid. That move came just before Elan shareholders rejected proposals from the firm that included a plan to invest $1bn to buy a 20pc stake of royalties from drugs produced by Theravance.

Perrigo will pay $6.25 in cash and is offering 0.07636 of its own shares for each Elan share. Perrigo shares were trading at $134.23 when the takeover plan was announced. On Friday, they closed at $153.13 in New York.

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