LONDON (Alliance News) - Respiratory pharmaceuticals company Vectura Group PLC on Thursday said it has received a letter of intent from a shareholder in peer Skyepharma PLC supporting the proposed merger of the two companies.
Vectura and Skyepharma, which are both focused on treatments for asthma and other respiratory illnesses, agreed to an all-share merger on Wednesday.
Under the terms of the agreement, Skyepharma shareholders will receive 2.7977 new Vectura shares for every Skyepharma share they hold. Based on Vectura's closing price of 146.60 pence per share on Tuesday, this would value Skyepharma at 410.15p per share, or a total of GBP441.3 million.
Vectura said River & Mercantile Asset Management LLP, which owns 4.8 million Skyepharma shares, or about 4.6% of its issued share capital, has agreed to vote in favour of the offer.
Vectura shares were up 4.3% to 158.50p on Thursday, while Skyepharma shares were up 3.2% to 426.48p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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