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Japan: Takeda’s value is falling in light of its US$62b Irish buyout

By  |  June 12, 2018

Takeda Pharmaceutical’s planned $62 billion takeover of Irish peer Shire has got off to a bad start. The value of the Japanese suitor’s offer is falling.  Takeda’s stock fell 16 percent between its interest in Shire emerging and the agreement of terms in early May. It has since fallen another 5 percent.

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    As a result, the market cap of the nation’s leading drugmaker by sales fell below those of domestic rivals Astellas Pharma and Chugai Pharmaceutical at one point earlier this month, reported Nikkei.

    Takeda needs to lift its own share price, and thereby the value of its offer.  Each side was worth around $40 billion before the takeover talks. The offer is worth about $60 billion, to be paid roughly half in cash and half in new Takeda stock, so much that its share count will double.

    Nikkei Asian Review reports that many Shire shareholders won’t want to hold Japanese paper, despite a planned US listing. The stock market is worried that there aren’t enough new investors interested in owning a large Japanese drugmaker to keep the share price at its former level.

    Full Content: Asia Nikkei

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