Mayne Pharma's Cosette takeover saga could return to court as break fee dispute erupts
The two companies have both issued termination notices, but which one is valid remains up for debate.
Mayne Pharma and Cosette Pharmaceuticals are on another collision course despite the implosion of their $600 million takeover deal, with a dispute over termination fees now hurtling towards the NSW Supreme Court.
Mayne has been laying the groundwork to potentially sue Cosette for more than the $6.72 million break fee or go after private equity backers Avista Healthcare and Hamilton Lane, lawyers say, but Cosette will defend itself against allegations it materially breached the acquisition scheme.
Despite Treasurer Jim Chalmers blocking the acquisition on national interest grounds in response to Cosette's claim it may need to shutter Mayne’s manufacturing facility in Salisbury, South Australia, the two parties still needed to formally terminate the scheme.
A termination notice issued by Cosette was rejected by Mayne on Wednesday, arguing that Cosette can’t terminate the scheme because it “has failed to comply with its obligations” and that “wilful and intentional” breach has “directly and materially contributed to the failure” to get Foreign Investment Review Board (FIRB) approval.
