Mitsubishi Tanabe increasing Medicago stake
Mitsubishi Tanabe Pharma Corp. (Tokyo:4508; Osaka:4508) is increasing its stake in Medicago Inc. (TSX:MDG; OTCQX:MDCGF) to 60% from 6% and taking the company private. Mitsubishi will acquire all Medicago shares not already owned by the Philip Morris Investments B.V. subsidiary of Philip Morris International Inc. (NYSE:PM; Euronext:PM) for C$1.16 per share in cash, or about C$164.5 million ($156.6 million) based on 141.9 million shares outstanding not already owned by Mitsubishi or Philip Morris.
The price is a 22% premium to Medicago's close of C$0.95 on July 11, before the deal was announced. The deal values the entire company at C$296.8 million ($282.4 million). Philip Morris will have a 40% stake in Medicago after the deal closes, which is expected this year. The deal has been approved by Medicago's board and is subject to Medicago shareholder approval. TD Securities advised Medicago. Goldman Sachs advised Mitsubishi. ...