Chugai, Roche deal

Roche proposed to increase its stake in Chugai from 50.1% to 59.9% in a tender offer at ¥1,730 per share, which is an 11.7% premium to Chugai’s close on May 21, the day before the deal was announced. Based on 9.8% of Chugai's 559.6 million shares outstanding at December 31, the offer is worth about ¥94.9 billion ($911 million).

The price is an 11.7% premium to Chugai’s close on May 21, the day before the deal was announced. Under the 2002 merger of Roche’s Nippon Roche subsidiary and Chugai, Roche has the right to increase ownership to 59.9% at any time after the fifth anniversary of the agreement (see BioCentury, December 17, 2001). ...