Mayne Pharma shares slip after accusing Cosette of breaching takeover deal
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The news: Shares in Mayne Pharma slipped before noon after announcing overnight it had officially moved to terminate the deal to be acquired by Cosette Pharmaceuticals because Foreign Investment Review Board (FIRB) approval had not been received.
Mayne accused Cosette of “wilful and intentional” material breaches of the scheme implementation deed (SID), which had the effect of preventing FIRB approval.
The numbers: At 12:36pm AEDT, shares in Mayne had ticked down 0.3% to $3.35. Cosette had initially offered to buy the company for $7.40 per share in February.
The context: Mayne on Wednesday sent a notice of intention to terminate the SID to Cosette, claiming Cosette breached the SID through its “conduct and engagement with FIRB which had the effect of defeating the FIRB condition”.
Mayne also claims Cosette has made several other breaches of the SID “including in relation to Cosette’s obligations to ensure it had sufficient funds to meet its obligations under the SID to fund the proposed scheme (including in circumstances where the End Date was extended and its failure to comply with certain representations and warranties given in the SID regarding its debt financing obligations”.
If the claims made by Mayne persist for five business days it can formally terminate the scheme on 10 December 2025.
Cosette was trying to terminate the deal earlier this year. After failing to uphold a termination attempt in the NSW Supreme Court, Treasurer Jim Chalmers eventually killed the deal after refusing foreign investment approval amid concerns Cosette would close Mayne’s manufacturing facility in Salisbury, South Australia.
The source: ASX
