Cosette Pharmaceuticals disagrees with Mayne Pharma's FIRB-related announcement
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More news: Cosette Pharmaceuticals believes there are "material inaccuracies" in Mayne Pharma's response to reports regarding concerns its Salisbury manufacturing facility could be shuttered if Cosette acquires the company.
A spokesperson for Cosette Pharmaceuticals said they believe Mayne's statement to the exchange, which relates to "matters involving the Foreign Investment Review Board" (FIRB), made on Monday "contains material inaccuracies". However, these were not specified.
Media reports over the weekend stated that the South Australian state government has asked the FIRB to block the deal on concerns it would lead to the closure of Mayne's manufacturing facility in Salisbury, South Australia.
Mayne told the exchange on Monday morning that it has no plans to close the facility and that it had not informed FIRB of any potential closure in July, as reported.
Mayne also claimed that Cosette is withholding consent regarding Mayne engaging directly with FIRB in relation to Cosette's communications with the regulator after purportedly terminating the deal.
Cosette Pharmaceuticals is trying to terminate its proposed $672 million takeover of Mayne, with the validity of that termination scheduled to be heard in the Supreme Court from 22 September.
Mayne Pharma shares plunge after rebuking facility closure fears amid Cosette’s takeover struggles
More news: Shares in Mayne Pharma plunged in morning trade after it denied reports that US-based takeover suitor Cosette Pharmaceuticals is considering shutting Mayne’s manufacturing facility in Salisbury, South Australia if the deal proceeds.
At 12:04pm AEST, Mayne Pharma shares had slipped 13.1% to $4.59.
Cosette has been trying to terminate its scheme implementation deed to acquire Mayne Pharma for $7.40 per share, citing a material adverse change at the acquisition target.
Mayne Pharma denies any material adverse change has taken place and the matter is currently before the Supreme Court. The case is scheduled to be heard from 22 September.
Mayne Pharma denies reports that Cosette Pharmaceuticals takeover could put facility at risk
The news: Mayne Pharma has denied media reports that it informed the Foreign Investment Review Board (FIRB) that its Adelaide manufacturing facility could be shut down due to financial difficulty and said it was not aware of any purported intentions by takeover suitor Cosette Pharmaceuticals.
The context: Cosette Pharmaceuticals has been attempting to terminate a scheme implementation deed to takeover Mayne Pharma with the attempted termination currently before the Supreme Court.
Over the weekend, The Advertiser and the Financial Review reported that South Australian Premier Peter Malinauskas had asked FIRB to block the proposed $672 million buy out of Mayne Pharma by US-based Cosette Pharmaceuticals on concerns that Cosette would close Mayne’s manufacturing site in Salisbury, South Australia.
Mayne says it "was not previously made aware of any dialogue or communications with the SA Premier, or between his office and Cosette, nor between the SA Premier and FIRB".
The Financial Review further noted that “Mayne advised FIRB of the possible closure in July, citing the company’s deteriorating financial position which could force it to take steps to arrest any decline”.
Mayne denies this and stressed that it has no intention to close the Salisbury facility, flagging that it posted a 7% revenue year-on-year increase at its recent full-year results and completed an $18 million facility upgrade.
Mayne said it is aware that Cosette has had correspondence with FIRB following its purported termination of the scheme implementation deed, but correspondence seen by Mayne does not flag “plans to close the Salisbury Site”.
The South Australian pharma business also noted that while it provided information to Cosette, the US business has not consented that Mayne engage directly with FIRB in relation to Cosette’s communications.
Mayne said it “has had no direct communications with FIRB or the South Australian government in respect of the Scheme transaction”. The pharmaceutical business is also “endeavouring to obtain further information”.
The sources: ASX, The Australian Financial Review , The Advertiser
