(Alliance News) - Philip Morris International Inc's controversial takeover of Vectura Group PLC is now unconditional in all respects after holders of 75% of Vectura shares accepted the deal before the Wednesday deadline, the tobacco company said on Thursday.
Shares in Vectura were up 0.4% to 165.00 pence each in London on Thursday morning, in line with the offer price.
Philip Morris needed 50% support from shareholders of Vectura, including the 29% stake it bought through on-market purchases after announcing the offer. Having already received all necessary regulatory approvals, the deal is now ready to go ahead.
Chippenham, Witshire-based Vectura makes inhalers for drugmakers to use in products such as asthma medication. The GBP1.02 billion takeover by Philip Morris caused controversy, with charities saying the cigarette maker would profit from illnesses it caused. Philip Morris said the deal is part of its "evolution into a broader healthcare and wellness company."
"We are very excited about the critical role Vectura will play in our Beyond Nicotine strategy and look forward to working with Vectura's scientists and providing them with the resources and expertise to grow their business to help us achieve our goal of generating at least USD1 billion in net revenues from Beyond Nicotine products by 2025," Philip Morris Chief Executive Jacek Olczak said.
The deadline for remaining shareholders to accept the offer has been extended to September 30.
By Ivan Edwards; ivanedwards@alliancenews.com
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