(Alliance News) - Consort Medical PLC, a contract development and manufacturing pharmaceutical company, on Monday said it has agreed to a GBP505 million acquisition offer from Swedish peer Recipharm AB.
Under the offer, a unit of Recipharm will pay 1,010 pence in cash for each Consort share, representing a premium of 39% to Consort's closing stock price of 726p on Friday. The proposed deal implies an enterprise value of GBP627 million for Consort.
Recipharm may reduce its acquisition consideration if any dividend or other distribution is made by the Hemel Hempstead-based company, Consort said.
Consort shares were up 42% at 1,030.00p each in London on Monday morning, giving it a market capitalisation of GBP503.5 million.
Christopher Brinsmead, chair of Consort, said: "We believe that Recipharm's businesses are highly complementary to our own and the board intends to unanimously recommend the offer from Recipharm which represents a 39% premium to our share price."
Recipharm expects the acquisition to close in the first quarter of 2020. Recipharm has received irrevocable undertakings to accept its offer from each of the Consort directors in respect of their own shareholdings of, in aggregate, 81,172 Consort shares representing 0.2% of the outstanding share capital of Consort.
In the year ended April 30, Consort generated revenue of GBP305.1 million. By comparison, Nasdaq Stockholm-listed Recipharm recorded turnover for the 12 months ended September 30 of SEK7.2 billion, around GBP577.5 million.
By Tapan Panchal; tapanpanchal@alliancenews.com
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