Sinclair Pharma agrees to potential 32p a share offer from Huadong

29th Aug 2018 08:16

(Sharecast News) - Sinclair Pharma has agreed to a potential takeover offer by a subsidiary of China's Huadong Medicine Co for 32p a share in cash.It is intended that the offer, if made, would be structured as a recommended offer to be implemented by way of a scheme of arrangement.The price would represent a premium of 74.9% to the Sinclair closing price on 4 July, which was the last business day before the announcement that the two businesses were in discussions. It would represent a 91.3% premium to the volume-weighted average price of approximately 16.7p for the three-month period ending on 4 July."The Sinclair independent directors believe that the level of the cash consideration being proposed by Huadong is such that it is in Sinclair shareholders' interests to progress matters with Huadong to the point where the offer can be made," the company said. "Accordingly, the Sinclair independent directors would expect to recommend the offer at the offer price, if made."Huadong, whose deadline to make an offer has already been extended three times, now has until 1700 BST on 5 October to either announce a firm intention to make an offer for Sinclair or walk away.The company, which first confirmed it had made an approach to Sinclair in July, has agreed to announce a firm intention to make an offer before 2 October, ahead of the deadline.At 0812 BST, Sinclair shares were up 33.6% to 26.80p.