'Shocking'. 'Incompetent': Mayne investors in disbelief as Chalmers kills $600m sale
One prominent shareholder is threatening a class action lawsuit and others are furious after a sale of the pharmaceuticals business to America's Cosette was blocked on national interest grounds.
Treasurer Jim Chalmers’ decision to kill private equity-backed Cosette Pharmaceuticals’ $600 million acquisition of Mayne Pharma has left shareholders in disbelief after recent regulatory orders appeared to pave the way for the deal to get over the line.
Cosette, backed by investment firms Avista Healthcare and Hamilton Lane, on Friday finally escaped from the deal seven months since signalling its first termination attempt. Chalmers adjudged that the transaction was not in the national interest because of a threat to close Mayne's Adelaide manufacturing facility.
The successful escape came despite Cosette losing a case in the NSW Supreme Court, and after the Takeovers Panel this week ordered it to accept any reasonable conditions that would restrain the closure of the facility, which many observers thought would facilitate conditional approval of the deal.
Manoj Jain, co-chief investment officer of Hong Kong-based investment firm and Mayne shareholder Maso Capital, said “this decision from the Treasurer is shocking and demonstrates a complete lack of understanding of commercial reality”.
