Open Orphan agrees acquisition of hVIVO at 34% premium

(Sharecast News) - Open Orphan, the rare and orphan drug services company, has agreed the takeover of hVIVO by means of an all-share reverse take-over at a 33.8% premium.
The proposed transaction, which requires the approval of both companies' shareholders, valued the latter at roughly 15.6p a share.

HVIVO shareholders would receive 2.47 new Open Orphan shares for each hVivo share that they held, giving them a 44.67% stake in the enlarged firm following the tie-up.

In a statement, Open Orpha argued that the two companies would gain from a merger through various channels, includinbg wider margins and higher service revenues, a broader in-house clinical service offering and from the commercialisation of hVIVO's database through the Open Orphan platform.

Any dividend or other distribution of value that might be proposed or become payable to hViVO ownwer on or after the date of the offer becoming unconditional, would give Open Orphan the right to deduct it from the amount payable for each HVIVO share.

As of 1515 GMT, shares of hVIVO were trading 3.23% lower at 11.25p.