Mayne Pharma shares soar on sale to Cosette Pharmaceuticals
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The news: ASX small cap Mayne Pharma saw its shares surge more than 30% after US-based Cosette Pharmaceuticals agreed to acquire the Adelaide-based specialty pharmaceutical company.
The numbers: Mayne shares were up 33.2% to $7.21 at 3:35pm AEDT.
Cosette has agreed to buy 100% of the shares in Mayne at a price of $7.40 per share. The offer values Mayne at approximately $672 million and represents a 37% premium to its last closing share price.
The context: Mayne's board has unanimously recommended that its shareholders vote in favour of the scheme of arrangement, in the absence of a superior proposal.
Mayne's two largest shareholders — Perth-based private equity firm Viburnum Funds and gambling billionaire Bruce Mathieson — who collectively own 14.1% of the company's shares, have both voiced support for the proposal.
Cosette is a US-based pharmaceutical company backed by private equity firm Avista Healthcare Partners and Nasdaq-listed private markets investor Hamilton Lane.
What they said: "We are pleased that Cosette has recognised significant value in Mayne Pharma, particularly in our women's health and dermatology businesses, and the offer provides shareholders with the opportunity to receive cash value at a significant premium," said Mayne chair Frank Condella.
Mayne chair Shawn Patrick O'Brien said: "Today marks a pivotal moment in Mayne's journey to improve patient access to life-enhancing medications."
"Attracting an offer from a strategic buyer who is active in the US dermatology and women's health markets, such as Cosette, reflects the excellent work our teams have been doing to strengthen our company over the last year and more," he said.
The source: ASX
