(Alliance News) - Drug consulting firm Open Orphan PLC on Friday said its tie-up with hVIVO PLC is now wholly unconditional and it will mount a compulsory acquisition of the remaining shares in the development services provider that it does not already own.
Open Orphan explained it intends to pursue a compulsory takeover, in accordance to the UK's Companies Act.
On Tuesday, the company said the offer was accepted by 93% of hVIVO's shareholders and it was closed for acceptance.
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%.
Open Orphan shares were 4.4% lower at 6.45 pence each in London on Friday morning.
hVIVO's stock was 4.8% lower at 16.55p.
By Eric Cunha; ericcunha@alliancenews.com
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