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(Alliance News) - Drug consulting firm Open Orphan PLC on Tuesday said it expects to mount a compulsory acquisition to seal its takeover of clinical development services provider hVIVO PLC.
As of Monday afternoon, Open Orphan said the offer was accepted by 93% of hVIVO's shareholders. The offer is now closed for acceptance, the company added.
Open Orphan explained it intends to pursue a compulsory takeover, in accordance to the UK's companies act.
In early December, the two AIM-listed companies had announced agreement on terms for a reverse takeover of hVIVO by Open Orphan in a deal that valued hVIVO at GBP13.0 million.
Under the terms of the agreement, hVIVO shareholders will receive 2.47 new Open Orphan shares per hVIVO share. The deal values hVIVO shares at 15.56 pence each, a 34% premium to the clinical development services company's closing price of 11.62p on December 8, the day before the initial announcement.
hVIVO shareholders will own 45% of the enlarged firm, with Open Orphan shareholders having the other 55%.
Shares in Open Orphan were 2.4% lower at 6.27 pence each in London on Tuesday afternoon. hVIVO shares were 1.2% lower at 16.30p each.
By Eric Cunha; ericcunha@alliancenews.com
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