(Alliance News) - Philip Morris International Inc's attempt to acquire London-listed Vectura Group PLC was scuppered on Friday, after private equity firm Carlyle made a sweetened GBP958 million bid for the asthma treatment firm.
Carlyle said it would pay 155 pence per Vectura share, valuing the company's issued and to be issued share capital at GBP958 million. In July, Philip Morris made a 150p per share offer.
Marlboro cigarette maker Philip Morris said that its bid, plus a 19p interim dividend, valued the FTSE 250 constituent at GBP1.04 billion. Without the 19p payout, the 150p tilt values Wiltshire-based Vectura at GBP927.1 million.
Carlyle itself had previously offered 136p per Vectura share.
Vectura shares were 6.0% higher at 163.28p each in London on Friday afternoon, shooting up from 153.80p just before the Carlyle announcement. Vectura currently has a market capitalisation of GBP977.4 million.
Vectura withdrew its backing for the PMI offer. Carlyle's bid has received the backing of just over 11% of Vectura shareholders, the company said.
Vectura said the terms of the new Carlyle offer are "fair and reasonable".
Philip Morris aimed to acquire Vectura in a bid to further expand its reach beyond tobacco and nicotine.
It comes after Philip Morris earlier in July acquired Fertin Pharma AS, a developer and manufacturer of pharmaceutical and wellbeing products based on oral and intra-oral delivery systems, for an enterprise value of USD820 million.
Vectura makes inhaled medicines, including the Flutiform asthma drug, and drug-delivery devices. Since 2019, it has been moving towards a contract business model in which it supplies services to pharmaceutical firms, rather than developing its own drugs.
Regulatory fears have long clouded the tobacco industry. In April, the Wall Street Journal reported US President Joe Biden was mulling cutting the amount of nicotine allowed in cigarettes. The WSJ explained the cut would leave the amount nicotine in cigarettes at levels which are no longer addictive.
Philip Morris shares were 0.2% lower at USD99.50 each in New York on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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