11th Jan 2016 12:40
LONDON (Alliance News) - Shire PLC Monday announced its much-awaited acquisition of US peer Baxalta Inc Monday, in a deal that values Baxalta at around USD32 billion.
Shire will pay USD18.00 in cash and 0.1482 Shire American depositary shares per Baxalta share. Based On Shire's closing ADS price last Friday this implies a total current value of USD45.57 per Baxalta share, Shire said.
This is a premium of around 37.5% to Baxalta's share price August 3, when Shire had previously announced its initial offer for Baxalta. Shire had initially made an offer for Baxalta, which was spun-off from US medical group Baxter last July, which valued Baxalta at around USD30 billion.
However, Baxalta rebuffed the USD30.0 billion offer as "significantly" undervaluing Baxalta, and suggesting that a merger at such an early stage in the company's existence would be "severely disruptive".
"This proposed combination allows us to realise our vision of building the leading biotechnology company focused on rare diseases. Together, we will have leadership positions in multiple, high-value franchises and become the clear partner of choice in rare diseases. Our expanded portfolio and presence in more than 100 countries will drive our growth to over USD20 billion in anticipated annual revenues by 2020. Our due diligence has reinforced our belief in the combination, and we look forward to welcoming Baxalta colleagues to a shared entrepreneurial, patient-driven culture," said Chief Executive Officer Flemming Ornskov in a statement.
Shares in Shire were up 0.3% at 4,290.00 pence following the announcement Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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