16 Sept 2021
Philip Morris Acquires Vectura with 75% Majority Support
The Index Today
Philip Morris has acquired the billion pound takeover of Vectura, the London listed asthma drug maker after gaining the support of 75% of shareholders. The takeover comes as the company’s initiative to expand its business portfolio beyond just tobacco.
PMIs smoke-free plan focuses on switching to the healthcare and wellness industry. Vectura shareholders supported the 165 pence per share bid and reveal their final decision by September 15th. PMI Chief Executive, Jacek Olczak said in a statement, “We have reached an important milestone in our acquisition of Vectura and are pleased to have secured over 74% of the company’s shares, in excess of the 50% required to make our offer unconditional and the PMI the majority shareholder.”
Shares were received through a public tender offer process with no option for withdrawal. The corporation had to compete against Carlyle Group, a private equity firm for the buyout. The initial proposal was later changed to a buyout position to increase chances of approval. Health groups have come forward with concerns of the tobacco company venturing into healthcare. However, PMI has been cleared by regulatory bodies and can proceed with the new takeover.
Under the new deal, PMI will allocate advanced resources to expand the scientific research unit at Ventura in hopes of achieving its revenue goal of $1 billion with its new line of “Beyond Nicotine” products by 2025.
©Photo: Financial Times