LONDON (Reuters) – Japan's Takeda Pharmaceutical ( 4502.T ) will next month hold an investor vote on its $ 62 billion acquisition of Shire ( SHP.L ) Hold the deal on January 8th and signal his confidence in securing the required support.
FILE PHOTO: The Takeda Pharmaceutical Co logo is on July 2, 201
Shares of the London-listed Shire rose 3 percent versus the news, peaking since Takeda first showed interest in buying the specialist in rare diseases in March would have.
The deal would be the largest ever acquisition of a Japanese company overseas – but it needs two-thirds of shareholder support, some of which are worried about the resulting debt burden of the enlarged company.
Takeda said Monday it would hold an extraordinary general meeting of shareholders to vote on the deal on December 5.
Previously, Takeda had said she hoped to hold the Extraordinary General Meeting in early 2019, leaving uncertainty for the deal, which was rejected by some members of the founding Takeda family.
"Following the date of our Extraordinary General Meeting of Shareholders, we look forward to continuing our dialogue with our shareholders on the compelling strategic and financial benefits of this transaction," said Christophe Weber, Chief Executive Officer.
Weber – a Frenchman and the company's first non-Japanese CEO – believes that the purchase of Shire will accelerate Takeda's growth and increase its international reach, thereby increasing profits.
Transaction still needs to be cleared by European regulators, although two Reuters trustees told Reuters last week that Takeda should be granted EU antitrust clearance.
Takeda has offered to divest Shire's experimental drug SHP647 to address concerns over overlaps in the treatment of inflammatory bowel disease.
The acquisition has already secured approval from regulators in the United States, Japan, China and Brazil.
Weber said last week that he was confident he would win investors over to buy Shire, but until now it was not clear exactly when Takeda would call his EGM.
Takeda, which has a market value of approximately $ 32 billion, has received a bridge loan of $ 30.9 billion to support the acquisition of Shire, and some investors are concerned about how well they are doing with the Repayment of debt can handle.
The Japanese company reached an agreement in May to acquire Shire in an agreement that will put it in the top 10 ranking of global drug companies.
However, the extended group faces significant challenges, especially in hemophilia, where a new Roche drug ( ROG.S ) and the prospect of new gene therapies currently under development a significant part of Shire's existing existence threaten business.
Reporting by Ben Hirschler; Edited by Jason Neely and Louise Heavens