Tokyo (AFP) – The board of Irish pharmaceutical company Shire will recommend a new £46 billion ($64 billion) takeover bid by Japanese firm Takeda to its shareholders, it said in a statement released Tuesday night.
It said it was “willing to recommend the revised proposal to Shire shareholders subject to satisfactory resolution of the other terms of the possible offer”, setting a new May 8 deadline for the conclusion of negotiations.
Takeda shares plunged nearly six percent in Tokyo trade, which began soon after the Shire announcement, reflecting the concern of some analysts that a takeover bid of this magnitude could put too much pressure on the Japanese firm’s finances.
If successful, the takeover would be the biggest ever by a Japanese company.
The revised proposal comprises 0.839 new Takeda shares and $30.33 in cash for each Shire share.
“On this basis the revised proposal is equivalent to a value of approximately £46 billion for the entire issued and to be issued share capital of the company,” the Irish company said.
“Shire shareholders would also be entitled to any dividends announced, declared, made or paid by Shire in the ordinary course prior to completion of the possible transaction,” it said.
It added that at completion of the deal, Shire shareholders would own about 50 percent of the enlarged Takeda and the new Takeda shares would be listed in Japan and in the United States.
In a statement, Takeda said only that it “notes the statement” made by the Shire board.
The Japanese firm first officially expressed interest in Shire last month, but has seen a series of offers rebuffed.
Last Friday, Takeda increased its informal bid to £42.8 billion, after Shire rejected its three previous overtures as too low.