Shire/Takeda: Takeda founding family, former workers oppose deal over financial deterioration concerns
The founding family of Takeda Pharmaceutical [TYO:4502], also a shareholder of the Japanese pharmaceutical company, is opposing the proposed acquisition of Ireland-based smaller rival Shire [LON:SHP], the Journal of Pharmaceutical Business reported on its website.
The founding family, joined by some former workers of the company, has decided to oppose the proposal, because of concerns over the company's financial status after the deal and concerns over further decline of the share price, the monthly magazine of the pharmaceutical industry reported on its website, citing people familiar with the situation.
The agreement between the two pharmaceutical firms on Takeda's GBP 46bn (USD 62.3bn) offer to acquire Shire was announced on 8 May. But, Takeda's plans of the acquisition was first reported by media on 28 March, the magazine article said.
On 25 April, a group of about 120 members of Takeda alumni and the founding family members made a shareholder proposal to the company for the annual regular shareholders meeting expected to be held in late June, seeking restrictions to decision-making authorities of the company's board of directors, the report added.
The shareholder proposal demanded Takeda to add a corporate article that requires the company to gain shareholders approval for the deal at the annual regular shareholders meeting, if the deal value exceeds JPY 1tn (USD 9.1bn), according to the magazine report.
The total cost of the proposed acquisition is estimated to be about JPY 6.8tn, and half of the cost will be financed with an issue of Takeda new shares, which would result in share value dilution in the market, with the company's interest-bearing debt expected to mount to exceed JPY 6tn, the report explains.
The proposed acquisition is subject to shareholders approval at an extraordinary shareholders meeting, even though the timing of it has not been decided, the report noted.
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