Takeda Closes in on Shire with $64 Billion Bid

Rare Daily Staff

The board of rare disease drugmaker Shire said it is prepared to recommend that shareholders accept a sweetened $64 billion (£49) tender offer from Takeda Pharmaceuticals in cash and stock.

Takeda latest bid is the fourth it has made for Shire. The $64 billion bid has grown from an initial value of $57.8 billion when Takeda first approached the company.

The revised proposal includes 0.839 new Takeda shares worth $37.98 (£27.26) shares and $30.33 (£21.75) in cash for each Shire ordinary share. At completion of the acquisition, Shire shareholders would own approximately 50 percent of the enlarged Takeda and the new Takeda shares will be listed in Japan and in the United States through an ADR program.

An acquisition of Shire would propel Takeda into a leading rare disease company and strengthen its position in specialty pharmaceuticals. It would also expand on Takeda’s core strength in neuroscience and enhance the company’s geographic reach by strengthening its presence in the United States.

“The board has indicated to Takeda that it would be willing to recommend the Revised Proposal to Shire shareholders subject to satisfactory resolution of the other terms of the possible offer, including completion of reciprocal due diligence by Shire on Takeda,” Shire said in a press release. “Accordingly, the board will engage in discussions with Takeda in relation to these terms.”

The making of any firm offer by Takeda would be subject to agreement of certain other terms of the revised proposal including satisfactory completion of a confirmatory due diligence review by Takeda, unanimous and unconditional recommendation of the board of Shire, and final approval by the board of Takeda.

Takeda said it reserves the right to waive in whole or in part any of the pre-conditions to making a firm offer set out in this announcement.

Earlier this month Allergan indicated it might make an alternative bid for Shire, but multiple reports say it has decided not to make a bid.

April 25, 2018