Redx Pharma suitor now holds 57.8% of its shares
Redmile, the US-based biggest stakeholder in Cheshire drugs discovery firm Redx Pharma, said its takeover offer for the firm – which was sent to shareholders this afternoon (April 9) – will be wholly unconditional after acquiring more of its shares.
On March 13, Redmile announced that its shareholding in Redx stood at 45.5%, having purchased 39.5% of the total Redx shares from Moulton Goodies earlier that day which meant it had to make a mandatory cash offer for the Redx shares not already held or agreed to be acquired by Redmile.
On April 2, RM Special Holdings 3, LLC, a special purpose vehicle wholly-owned by investment funds managed by Redmile Group, LLC revealed that, since the announcement of the recommended mandatory cash Offer on March 13, it had acquired, or agreed to acquire, a further 24,090,838 ordinary shares in Redx Pharma.
This means that Redmile now owns a total of 109,809,326 Redx Shares, representing approximately 57.79% of the ordinary share capital of Redx in issue on the date of this announcement.
As a result of Redmile holding more than 50% of the issued ordinary share capital of Redx, the mandatory offer will be wholly unconditional.
Just before 5pm today Redmile announced to the stock exchange that its offer for Redx has been sent to shareholders.
Acceptances must be received by 1pm (London time) on April 30. However, because Redmile owns more than 50% of the shares, it can close the offer without further notice on the first closing date, or any subsequent closing date.
At the time of the March 13 announcement, Redx directors said they would recommend unanimously that shareholders accept the offer, which valued the entire issued, and to be issued share capital of Redx, at approximately £29.45m.
Redx chairman, Iain Ross, said on March 13: “As previously announced, the board has been seeking to secure long-term finance for Redx.
“We believe that this cash offer represents an optimal outcome for shareholders, while securing Redx’s ability to fund its differentiated and exciting research and early development pipeline.”
