Mayne Pharma rejects Cosette’s second attempt to terminate $672m deal
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The news: Drug company Mayne Pharma is pushing back against US-based Cosette Pharmaceuticals' second attempt to terminate a proposed $672 million takeover and pressing ahead with a shareholder vote on the deal next Wednesday.
The context: The latest termination notice is based on Cosette’s claim that Mayne has breached the representation and warranty outlined in the scheme implementation deed (SID) agreed to in February.
When Cosette provided its first termination notice last Wednesday, the company also sent a further notice making the representation and warranty breach claim. Cosette said the notice would enable it to send an additional termination notice after five business days.
The further termination notice “is framed as a notice of termination if for any reason the SID has not already been terminated,” Mayne said in an announcement to the exchange on Friday afternoon,
“Mayne Pharma intends to reject the Further Cosette Termination Notice as invalid and reiterates its position that there is no lawful basis for Cosette to terminate the SID.”
Cosette’s first termination notice was based on concerns that a material adverse change had occurred, although this is contested by Mayne.
Mayne shareholders will vote on the deal on 18 June.
The source: ASX
