Tuesday 25 September 2018

Shire board recommends £46 billion offer from Takeda

It comes after Takeda tabled several offers that were rejected by the Irish-based firm.

Shire is set to fall into Japanese ownership (PA)
Shire is set to fall into Japanese ownership (PA)

By Ravender Sembhy, Press Association City Editor

The board of pharmaceutical giant Shire has recommended a £46 billion takeover bid from Japan’s Takeda.

It comes after Takeda tabled several offers that were rejected by the Irish-based firm.

Takeda’s latest proposal is worth £49 per share, £21.75 of which is cash and £27.26 in new Takeda shares.

“The board has indicated to Takeda that it would be willing to recommend the revised proposal to Shire shareholders subject to satisfactory resolution of the other terms of the possible offer.

“Accordingly, the Board will engage in discussions with Takeda in relation to these terms,” Shire said.

At completion, Shire shareholders would own around 50% of the new entity, with new Takeda shares to be listed in Japan and the US.

Under the terms of the offer, Shire shareholders would also be entitled to “any dividends announced, declared, made or paid by Shire in the ordinary course prior to completion of the possible transaction”.

Botox maker Allergan confirmed last week it would not make a bid for Shire, just a day after saying it was weighing up an offer.

Takeda’s rationale for acquiring Shire is to “accelerate its transformation and result in a global, value-based, R&D-driven biopharmaceutical leader”, to be headquartered in Japan.

In addition, a tie-up would help realise the Japanese company’s R&D strategy, drive financial value and allow it to exploit further opportunities in the US.

Press Association

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