1st May 2020 14:36
(Alliance News) - Redmile Group LLC on Friday said its offer for takeover target Redx Pharma PLC has closed, adding that it now holds a 92% stake in the drug discovery company.
The US healthcare investor said as at the 1300 BST deadline on Thursday, it has bought a further 63.7 million Redx shares - around a 34% stake - meaning that after the expiry of the deadline, it either owned or had received valid acceptances of its offer in respect of a total of 174.4 million shares.
In February, Redx ended takeover talks with Yesod Bio-Sciences and instead inked a GBP26.3 million funding deal with two investors, Redmile and Paris-based Sofinnova Partners.
Redmile subscribed for 11.5 million Redx shares, around 6% stake, at 11.2p, and also agreed to provide GBP5 million to Redx through a loan. In addition, Redmile and Sofinnova together committed to a further investment of about GBP20 million through a convertible loan.
In March, Redx said Redmile upped its stake in the company to around 46%, forcing Redmile to make a mandatory takeover offer under UK takeover rules. Redmile had bought the additional 75 million Redx shares, a 39.5% stake, from Moulton Goodies Ltd at 15.5p per Redx share. As a result, Redmile made a mandatory cash offer for Redx shares not already owned at 15.5p each.
The merger valued the entire Redx share capital at GBP29.5 million.
Shares in Redx were trading 11% lower at 14.00 pence each on Friday afternoon in London, giving it a market capitalisation of 26.6 million.
By Ife Taiwo; [email protected]
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