LONDON (Alliance News) - US medical devices manufacturer Boston Scientific Corp said Tuesday it has agreed to acquire UK rival BTG PLC for GBP3.3 billion.
Under the terms of the acquisition agreement, Boston Scientific will pay 840 pence cash via its acquisition vehicle Bravo Bidco Ltd for each BTG share, a 37% premium the closing price of 615 pence per BTG share on Monday. The offer price for BTG stands to be reduced if it declares any dividend by the amount of all or part of any such dividend, or distribution.
Shares in BTG jump 34% on Tuesday morning to 824.00 pence each, on the back of the offer.
BTG said its directors consider the Boston Scientific offer to be fair and reasonable and intend to recommend unanimously that BTG shareholders vote in favour of the merger agreement at a court meeting and general meeting.
Boston Scientific has received irrevocable undertakings in respect of 128.0 million BTG shares, representing 33.1% of BTG share capital, for its acquisition offer.
BTG, which manufactures polymer beads for treating cancer tumours and drugs for treatment of snake venoms, earlier in November posted 10% year-on-year growth in product sales for the first half, leading to a sharp rise in revenue and earnings.
The company's pretax profit for six months to September 30 rose 47% to USD87.5 million from USD59.7 million the year prior, helped both by the rise in revenue as well as a 30% drop in selling, general, and administrative expenses. Revenue grew 12% year-on-year to USD495.7 million.
