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Philip Morris wins takeover battle for inhaler maker Vectura
12th Aug 2021 17:13
(Sharecast News) - US tobacco giant Philip Morris has won the battle for London-listed inhaler maker Vectura.
Vectura said on Thursday that its board of directors plans to unanimously recommend the 165p-a-share offer made by Philip Morris, which values the group at more than £1bn.
PMI had been engaged in a battle with Carlyle, but the private equity firm announced earlier this week that its latest offer of 155p-a-share was final.
"The Vectura directors appreciate Carlyle's interest in Vectura over this lengthy process and their support for Vectura's strategy to become one of the market leading CDMOs in the inhalation segment.
"However, the Vectura directors recognise the superior cash price the Final PMI offer provides Vectura shareholders. The Vectura directors also note that wider stakeholders could benefit from PMI's significant financial resources and its intentions to increase research and development investment and to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business.
"Accordingly, following careful consideration of these factors and their fiduciary duties, the Vectura directors intend to unanimously recommend the PMI offer to Vectura shareholders."
Earlier in the day, it emerged that more than 20 health bodies, public health experts and doctors in the UK, Europe and the US have written to the board of Vectura urging its directors to reject the PMI offer.
Signatories of the letter said a takeover by the tobacco firm raises ethical concerns and would jeopardise the company's "future commercial viability as a company dedicated to improving respiratory health".
Vectura said on Thursday that its board of directors plans to unanimously recommend the 165p-a-share offer made by Philip Morris, which values the group at more than £1bn.
PMI had been engaged in a battle with Carlyle, but the private equity firm announced earlier this week that its latest offer of 155p-a-share was final.
"The Vectura directors appreciate Carlyle's interest in Vectura over this lengthy process and their support for Vectura's strategy to become one of the market leading CDMOs in the inhalation segment.
"However, the Vectura directors recognise the superior cash price the Final PMI offer provides Vectura shareholders. The Vectura directors also note that wider stakeholders could benefit from PMI's significant financial resources and its intentions to increase research and development investment and to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business.
"Accordingly, following careful consideration of these factors and their fiduciary duties, the Vectura directors intend to unanimously recommend the PMI offer to Vectura shareholders."
Earlier in the day, it emerged that more than 20 health bodies, public health experts and doctors in the UK, Europe and the US have written to the board of Vectura urging its directors to reject the PMI offer.
Signatories of the letter said a takeover by the tobacco firm raises ethical concerns and would jeopardise the company's "future commercial viability as a company dedicated to improving respiratory health".