(Alliance News) - Redmile Group LLC said on Thursday it has acquired a further 13% stake in takeover target Redx Pharma PLC.
The US healthcare investor said it acquired a further 24.1 million shares at 15.5 pence each. The acquisition takes its total shareholding in the drug discovery company to 110.6 million shares, reflecting a 58% stake.
In February, Redx ended takeover talks with Yesod Bio-Sciences and instead inked a GBP26.3 million funding deal with two investors, Redmile and Paris-based Sofinnova Partners.
Redmile subscribed for 11.5 million Redx shares, around 6% stake, at 11.2p, and also agreed to provide GBP5 million to Redx through a loan. In addition, Redmile and Sofinnova together committed to a further investment of about GBP20 million through a convertible loan.
In March, Redx said Redmile upped its stake in the company to around 46%, forcing Redmile to make a mandatory takeover offer under UK takeover rules. Redmile had bought the additional 75 million Redx shares, a 39.5% stake, from Moulton Goodies Ltd at 15.5p per Redx share. As a result, Redmile made a mandatory cash offer for Redx shares not already owned at 15.5p each.
The merger valued the entire Redx share capital at GBP29.5 million.
Redmile noted that once it holds more than 50% of Redx's issued share capital, the mandatory offer will become wholly unconditional, adding that it will make a further announcement following the settlement of the acquisitions.
Redx shares closed 0.4% higher at 14.30 pence each on Thursday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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