Pharmaceutical companies Vectura and Skyepharma have reached an agreement over a merger.
Under the agreement, announced this morning, Skyepharma’s shareholders will receive 2.7977 Vectura shares for each of their current shares.
Based on Vectura’s closing share price, 146.6p, this values Skyepharma at £441.3m, or 410.15p per share.
The companies said there would also be a partial cash alternative of up to £70m, meaning Skyepharama shareholders can choose to receive cash instead of some or all of the Vectura shares.
Under the proposed deal, excluding the partial cash alternative, Skyepharma shareholders would own around 41.75 per cent of the enlarged group. If the £70m is paid out in full, this figure would be 37.62 per cent.
Under the deal, Vectura’s chief executive, James Ward-Lilley, would take up the same role over the whole group.
The merged group would have a pro-forma market capitalisation of £1bn.
Vectura chairman Bruno Angelici, who would take up the same role under the merger, said: “The merger of Vectura and Skyepharma is a key milestone in the execution of our strategy to become a leading specialty pharmaceutical company, focusing on airways-related disease.”
Frank Condella, chairman of Skyepharma - who would become vice-chairman of the merged group - said: “The merger of Skyepharma and Vectura is a highly synergistic, value-enhancing transaction that will establish an industry leader in the development of inhalation products...
"The Skyepharma board believes this transaction offers our shareholders the opportunity to participate in a larger business with greater growth potential, diversified risk and a competitive market position."