18th Sep 2018 09:59
LONDON (Alliance News) - Sinclair Pharma PLC said Tuesday the pre-conditions for Huadong Medicine Aesthetics Investment (Hong Kong) Ltd's takeover have been met, clearing the way for a firm cash offer.
Late in August, Sinclair had said it had agreed a possible offer with Huadong worth 32 pence per Sinclair share, valuing it at approximately GBP166.6 million. Shares were 4.4% higher on Tuesday at 30.60p each.
One of the pre-conditions to be satisfied had been Huadong's financing of the deal. It is still conditional on shareholder approval.
Sinclair said just below 50% of its shareholders have so far signalled their intention to back the deal. The company expects the takeover to complete in November, should it be sanctioned.
Sinclair Chairman Grahame Cook said: "The cash offer announced today represents a compelling proposition for Sinclair shareholders and other stakeholders. The board continues to believe the prospects for Sinclair are excellent.
"However, the offer from Huadong allows Sinclair shareholders to crystallise future cash value today. In making the recommendation to Sinclair shareholders, we have taken into account business execution risk of our global roll-out and the challenge of operating in a large global market with finite capital resources."