Mayne Pharma shares recover after Deloitte backs $672m takeover bid
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The news: Mayne Pharma shares have surged, recovering from yesterday's deep losses, after a Deloitte evaluation backed US-based Cosette Pharmaceuticals' $672 million acquisition of the company.
The numbers: Mayne shares were trading 11.52% higher at $6.39 at 1:22pm AEST after the company said an independent expert report by Deloitte found the proposed acquisition price of $7.40 per share is fair and reasonable.
Deloitte considered the value of Mayne shares on a 100% controlling interest basis to be between $6.61 and $7.99.
The context: The Supreme Court of New South Wales has approved the convening of a shareholder meeting on 18 June to vote on the acquisition. Deloitte’s full report will be released on 19 May.
Cosette Pharmaceuticals is backed by private equity firm Avista Healthcare Partners and Nasdaq-listed private markets investor Hamilton Lane.
Mayne’s share price tumbled yesterday after a US Food and Drug Administration (FDA) letter was made public that expressed concerns the company misrepresented the risks of its birth control pill.
This led to a pause in trading until Mayne made an announcement that the concerns expressed in the letter are not materially price sensitive.
The source: ASX
