Bidder returns with second approach for Cheshire pharmaceutical company
Redx Pharma has revealed today that it has received a further private approach from Yesod Bio-Sciences that may lead to a possible cash offer for the Alderley Park business.
The company, which is focused on cancer and fibrosis treatments, was approached last year by the bid vehicle, and deadlines were extended twice, but, on February 28, Yesod made a stock exchange announcement that confirmed it did not intend to make an offer for the Redx shares.
Shortly after that announcement, Redx confirmed it had agreed a £26.3m funding package with Redmile Group, a large and well-funded US-based specialist healthcare and life sciences investment firm.
However, this morning, Redx said Yesod has been in contact once more.
It said: “The board is giving careful consideration to this private approach including discussions with Moulton Goodies, the company’s largest shareholder, and bearing in mind the commitments made in relation to funding from entities controlled by Redmile Group.”
It added: “The board understands that the proposed offer would be effected by way of a scheme of arrangement and the making of the proposed offer is conditional only upon the unanimous recommendation of the board of directors of Redx, and receipt of an irrevocable undertaking from Moulton Goodies, in a form acceptable to Yesod.”
Redx said it acknowledges that Yesod reserves the right to waive these preconditions and understands that, even in the event that these preconditions are met or waived, there can be no certainty that any firm offer will be made.
It said Yesod has also expressly reserved the right to reduce the offer consideration by the amount of any dividend or other distribution or return of capital which is paid, or becomes payable, by Redx.
Earlier this week Redx announced its annual results which showed that turnover rose from £129,000 to £3.1m, while a pre-tax loss of £6.335m compared with a £10.146m pre-tax loss the previous year.
