LONDON (Alliance News) - Moody's Investors Service late Wednesday expressed uncertainty regarding biotechnology company Shire PLC's credit profile following a potential acquisition by Takeda Pharmaceutical Co Ltd.
The latest proposal - the fifth one made by Japanese pharmaceutical company Takeda - comprises GBP27.26 in new Takeda shares and GBP21.75 in cash for each Shire share, worth a total of GBP46 billion.
Moody's said Shire is currently rated Baa3 with a positive outlook and an acquisition of it could have positive or negative implications. At this time, there is no impact on Shire's ratings or outlook, the investors service said.
However, Moody's Japan KK believes that Takeda's intention to buy Shire will place even greater downward pressure on Takeda's own current A1 ratings with negative outlook.
"This huge acquisition bodes a spike in leverage that could result in a multi-notch downgrade," said Moody's analyst Yukiko Asanuma.
Moody's noted that in case of the acquisition completing, it would be the largest overseas acquisition ever made by a Japanese company. It would increase Takeda's reported debt to around GBP39.4 billion from GBP6.6 billion, the credit ratings agency commented.
In addition, Moody's said it will take rating action should Takeda make a firm offer for Shire.
