Takeda increases Shire offer as Allergan ducks out
A tie-up would help realise the Japanese company’s R&D strategy and drive financial value.
Japan’s Takeda has upped its bid for Shire and increased the cash element of the offer as it continues its pursuit of the pharmaceutical giant.
Takeda said its new proposal is worth £47 per share, £21 of which is cash and £26 in new Takeda shares.
It values Shire at £42.8 billion, a slight advance on its last offer.
The Japanese firm said in a stock market announcement: “Takeda believes that the improved proposal represents a highly compelling opportunity for Shire shareholders, which reflects a further increase in value and a material increase in the cash component of the consideration mix.
“On completion of the proposed acquisition, Shire shareholders would hold a very meaningful stake in a leading global biopharmaceutical company and benefit from the material synergies expected to be derived from the acquisition.”
Shire shares were down over 2% in afternoon trade.
If the deal were to go ahead, Takeda would maintain its headquarters in Japan and primary listing on the Tokyo Stock Exchange.
It also intends to put in place a NYSE listed American Depositary Receipts programme at the point of completion to allow Shire shareholders to continue to hold stock in the combined company.
Takeda’s announcement came after Botox maker Allergan confirmed it would not make a bid for the 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.