Mayne Pharma shares lift after announcing further FIRB delay
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The news: Shares in Mayne Pharma lifted in afternoon trade after the pharmaceutical company announced that the Foreign Investment Review Board (FIRB) had extended its deadline for a decision on Cosette Pharmaceuticals' proposed acquisition of Mayne to 20 November.
The reluctant buyer has also given Mayne visibility of its debt arrangements to fund the acquisition, which “will only be available” if executed by 24 November 2025.
This is the revised end date of the scheme of implementation deed as extended by the Takeovers Panel.
The numbers: At 1:47pm AEDT Mayne shares were up 0.6% to $4.88. This was still below the proposed $7.40 per share acquisition price.
The context: Mayne said that it had “no visibility prior to 14 November on the status of discussions between Cosette and its financiers”. It has since received clarification that Cosette contacted its lenders on 13 November enquiring about debt commitment extensions.
According to Mayne’s announcement to the exchange, one lender said it would need to restart its due diligence and approval processes, but this could take several weeks and is not guaranteed.
However, Mayne said that Cosette’s payment obligations under the scheme of implementation deed are not conditional on the current debt facilities.
The source: ASX
