Mayne Pharma flags 'internal tension' in Cosette’s $672m takeover escape bid
After three weeks in court, Mayne Pharma and Cosette Pharmaceuticals await a ruling that could decide their $672m deal’s fate, with FIRB approval still pending.
Reluctant US-based suitor Cosette Pharmaceuticals has exchanged closing arguments with its eager target, Adelaide-based Mayne Pharma, capping three weeks of court hearings that could determine the fate of the $672 million deal.
NSW Supreme Court Justice Ashley Black is considering whether to let Cosette walk away from a binding scheme of implementation deed signed in February and is expected to deliver a decision in the latter half of next week.
He will in part consider the claim from Mayne’s barrister, Noel Hutley, that there is an inherent tension between Cosette’s assertion that a material adverse change (MAC) has occurred at Mayne and its allegation that Mayne misled the suitor.
Cosette’s primary argument is that Mayne suffered a MAC that has affected consolidated maintainable EBITDA over a 12-month period by at least $10.76 million, while one of its secondary arguments alleges that Mayne engaged in misleading or deceptive conduct.
