Mayne Pharma shares lift after Cossette issues third termination attempt
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The news: Shares in Mayne Pharma were trading higher after it told the exchange on Tuesday evening it had received a third notice of intention to terminate from US-based suitor Cosette Pharmaceuticals.
Mayne says it plans to reject any termination notice that is issued as a result of Cosette's latest notice of intention.
The numbers: At 12:01pm AEST, shares in Mayne Pharma had increased by 1.2% to $5.01.
The share price is still below the proposed takeover price of $7.40, implying an equity value of $672 million, which Mayne shareholders have already voted in favour of.
The context: The latest notice of an intention to terminate the deal was received by Mayne on Tuesday. The drug company told the exchange that the notice “alleges breaches of misleading or deceptive conduct laws and continuous disclosure obligations, all related to the circumstances surrounding" a FDA Untitled Letter it Mayne received in May.
Mayne maintains its position that “all information relevant to the FDA Untitled Letter” has already been disclosed to the market and “there is no new information required to be disclosed in light of the contest” of Cosette’s latest notice.
The notice indicates Cosette’s intention to terminate the scheme implementation deed if for any reason the deal is not terminated under the notices issued on 4 June or on 13 June.
Mayne previously told the exchange on 16 June that NSW Supreme Court hearings to determine the validity of the termination notices were listed for commencement on 9 September.
What they said: “Mayne Pharma intends to reject any termination notice received as a result of the Cosette 5 August Notice as invalid and reiterates its position that there is no lawful basis for Cosette to terminate the [scheme implementation deed],” the company told the exchange.
The source: ASX
