LONDON (Alliance News) - Shire PLC said late Tuesday that its board is willing to recommend a revised merger proposal worth GBP46 billion made by Japanese pharmaceutical company Takeda Pharmaceutical Co Ltd to Shire shareholders.
The Irish pharmaceutical company also said that it has agreed, with the consent of the UK Takeovers Panel, to extend the deadline for Takeda to make a final decision on its offer to May 8. The deadline had originally been due to expire later on Wednesday.
The latest proposal - the fifth one made by Takeda - comprises GBP27.26 in new Takeda shares and GBP21.75 in cash for each Shire ordinary share.
London-listed shares in Shire closed at GBP39.30 on Tuesday.
Under the revised offer, Shire shareholders would also be entitled to any dividends declared by Shire prior to completion of the possible deal. At completion, Shire shareholders would own around 50% of the enlarged Takeda, and the new Takeda shares would be listed in Japan and in the US through an ADR program.
"The board has indicated to Takeda that it would be willing to recommend the revised poposal to Shire shareholders subject to satisfactory resolution of the other terms of the possible offer, including completion of reciprocal due diligence by Shire on Takeda. Accordingly, the board will engage in discussions with Takeda in relation to these terms," Shire said in a statement.
Earlier on Tuesday, Shire confirmed a revised merger proposal from Takeda, without disclosing specific details of the offer. It said it was "considering its position", and stressed that there was no guarantee on any firm offer.
The first offer - received by Shire at the end of March - valued the drugmaker's shares at GBP44.00 each, with Shire shareholders to own around half of the enlarged Takeda. The company, however, rejected the offer, terming it as "significantly" undervalued.
The second offer was worth GBP45.50 a share, which was again rejected, as it did a third proposal of GBP46.50 per share. The fourth offer of GBP47.00 a share was also rejected by Shire.
All the proposals consisted of a mix of cash and Takeda shares.
