9th Aug 2018 14:42
LONDON (Alliance News) - Pharmaceutical company Vernalis PLC said Thursday that it reached an agreement to be taken over by Ligand Holdings UK Ltd.
Ligand, a unit of US-listed biopharmaceutical company Ligand Pharmaceuticals Inc, will acquire Vernalis for GBP32.7 million or 6.2 pence per Vernalis share.
Vernalis shares were trading up 12% at 6.00p each on the back of the news on Thursday.
The price of the offer represents a premium of 46% to Vernalis's closing price of 4.3p in mid-March, the last day before the formal sale process commenced.
The acquisition, which will be funded from Ligand's existing cash reserves, is in line with its "strategy to focus on acquiring technologies that help pharmaceutical companies discover and develop medicines", Ligand said.
The acquisition will be effected by means of a court-sanctioned scheme of arrangement between the companies and Vernalis directors recommended shareholders to vote in favour of the scheme at the company's next general meeting.
"On behalf of the board, following the formal sale process that the business initiated in March this year, I am pleased to recommend the acquisition of Vernalis by the Ligand Group to all Vernalis shareholders. The board was pleased with the interest the company received as part of the formal sale process and believes the cash offer from the Ligand Group represents the best value for all Vernalis shareholders," Vernalis Chairman Peter Fellner said.
Related Shares:
Vernalis PLC