Boston Scientific Corp has reached agreement with the board of BTG Plc on the terms of a takeover offer which values the UK specialty pharma company at £3.3 billion. The deal will be executed through Bravo Bidco Ltd, an entity indirectly owned by the US company.
Boston Scientific is offering 840 pence in cash per share of BTG. This represents a premium of 36.6% to the BTG closing share price of 615 pence on 19 November and a 51% premium to the company’s 90-day volume-weighted average share price for the period ended 19 November.
BTG is one of Britain’s more successful pharma companies with a portfolio of products directed at hospital markets around the world. The products range from drug-eluting beads to treat tumours in the liver to treatments for snakebites.
Revenue for the year ended 31 March 2018 was £620.5 million, up by 9% from a year earlier. The company had an operating loss for the year of £102.8 million. However adjusted to exclude restructuring and asset impairment costs, the operating result showed a profit of £152.7 million.
In a prepared statement, Michael Mahoney, chief executive of Boston Scientific, said the acquisition “is an exciting extension of our category leadership strategy that will augment our capabilities in important areas of unmet need such as cancer and pulmonary embolism.”
The deal will be put to a vote of BTG’s shareholders at a date still to be announced.
BTG announced the offer on 20 November 2018.
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