9th Apr 2020 18:38
(Alliance News) - Redmile Group LLC said on Thursday it has acquired 24.1 million more shares in takeover target Redx Pharma PLC.
Shares in Redx Pharma closed 0.3% lower at 14.95 pence each on Thursday in London.
The US healthcare investor said the acquisition takes its total shareholding in the drug discovery company to around 58%. It noted that it now holds more than 50% of Redx's issued share capital, thereby the mandatory takeover offer will become wholly unconditional when made.
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.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
REDX.L