DUTCH drug group Norgine yesterday revealed that it had raised its stake in ProStrakan, potentially throwing a spanner into the works of Kyowa Hakko Kirin’s £292 million takeover plans for the Borders-based speciality pharmaceutical company.
Shares in ProStrakan yesterday closed marginally down at 132.75p, but still above the 130p-a-share bid agreed with the Japanese drugmaker earlier in the week, largely on the prospect that Norgine could yet gatecrash the deal and come back with a higher bid.
In mid-November, ProStrakan rebuffed an offer from Norgine, which snapped up a 13.75% stake but whose bid was said to undervalue the company.
The Dutch group yesterday revealed that it has now taken its stake to 14.4%.
However, Tokyo-based Kyowa Hakko Kirin already has irrevocable undertakings to accept its offer from shareholders representing 47.71% of ProStrakan’s equity, including Warburg Pincus, Aberforth, Schroders and LMS Capital.
A competing bid is likely to have to be pitched at 140p or above to override their irrevocable backing.
Kyowa Hakko Kirin’s offer was also unanimously supported by ProStrakan’s board.
The Japanese company, a unit of Japanese beer giant Kirin Holdings that focuses on oncology and urology, earlier this week said the acquisition of ProStrakan was aimed at expanding its cancer drug business outside Japan.
The Scottish company, which employs around 70 of its 300 staff in Scotland, has a number of drugs in key global markets including Sancuso, a novel skin patch for the prevention of chemotherapy-induced nausea and vomiting, and cancer pain treatment Abstral.
Friday, February 25, 2011
ProStrakan takeover doubt after Norgine raises stake - Herald Scotland
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