Japan's three largest banks studying JPY 3trn loan to finance Takeda's potential offer to acquire Shire
Japan's three largest banks, including Sumitomo Mitsui Financial Group, Inc. [TYO: 8316], have started considering offering bridging loans to Takeda Pharmaceutical Co., Ltd. [TYO:4502] to finance the Japanese pharmaceutical firm's potential takeover offer to acquire Shire plc [LON:SHP], the Nihon Keizai Shimbunreported.
The size of the loans is about JPY 1trn (USD 9.34bn) each to finance the roughly JPY 3trn cash part of the potential takeover offer, the Japanese newspaper report said, without citing sources. If implemented, the aggregated size of the loans will be the largest in Japan for a syndicated loan involving major Japanese banks, the report added.
If requested by Takeda for the loans, the banks will take a positive stance in considering them, according to the report.
The Japanese pharmaceutical company on 20 April made an improved proposal to the board of Shire to fully acquire the rival firm at a price equivalent to GBP 47.00 per share, comprised of GBP 21.00 in cash (to be paid in USD) and GBP 26.00 of new Takeda shares.
The offer can be translated into a cash payment of a little less than JPY 3trn along with an issue of new Takeda shares worth about JPY 4trn, according to the report.
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