FIRB decision on Cosette takeover won’t meet Mayne Pharma’s timeline
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More news: Mayne Pharma said it has been informed that the Foreign Investment Review Board (FIRB) will not make a decision on its acquisition by Cosette Pharmaceutical that is in line with Mayne’s preferred timeline.
The second court hearing, that would give legal effect to the deal, scheduled for 22 October may now be moved. Mayne said it expects a FIRB decision before 31 October.
If the scheme is not implemented by 20 November it will lapse.
Mayne Pharma shares rocket after court blocks Cosette’s acquisition exit
The news: Shares in Mayne Pharma shot up in morning trade after the NSW Supreme Court ruled on Wednesday evening that reluctant suitor Cosette Pharmaceuticals could not terminate its acquisition deal.
The numbers: At 11:58am AEDT, shares in Mayne Pharma had lifted 10.8% to $6.27, although the stock is still a way off the $7.40 per share acquisition price.
The context: The NSW Supreme Court ruled against Cosette Pharmaceuticals on Wednesday, although the deal is still subject to Foreign Investment Review Board (FRIB) approval.
Mayne has outlined an indicative timeline for the deal, which includes a second court hearing scheduled for 2:00pm AEDT on 22 October to give legal effect to the deal, so long as FIRB approval is received prior to 8:00am AEDT on that day.
The second court hearing could also be potentially delayed, particularly if Cosette Pharmaceuticals lodges an appeal of the NSW Supreme Court decision. The scheme has until 20 November to be implemented, otherwise it will expire.
What they said: Luke Cummings, chief investment officer of M&A arbitrage fund and Mayne shareholder Harvest Lane told Capital Brief it’s great to get certainty regarding material adverse change claims as this is the first case that has made it to a court judgement under these circumstances.
“I think Justice Black has confirmed that a lot of what we all thought was the case in terms of how things should work and how courts would view things have been largely proven through that judgment. But it's nice to know that you have a practical example, not just something theoretical,” Cummings said.
