By Lisa Kerner
Charlotte, N.C., April 10 - Takeda Pharmaceutical Co. Ltd. agreed to acquire Millennium Pharmaceuticals, Inc. in a $25-per-share cash tender offer, it was announced on Thursday.
The deal, valued at some $8.8 billion, will accelerate Takeda's position in the oncology market, according to a Millennium news release.
Both companies' boards of directors unanimously approved the transaction, which is slated to close in the second quarter of 2008.
A termination fee of $247.3 million payable by Millennium is included in the definitive merger agreement, a form 8-K filed with the Securities and Exchange Commission said.
Millennium said it will continue to operate as a standalone business unit in Cambridge, Mass., as Millennium Pharmaceuticals, Inc., a Takeda Company.
Dr. Deborah Dunsire will continue to lead the biopharmaceutical company and its current management team as president and chief executive officer, Millennium said.
Takeda plans to finance the acquisition through cash on hand, with no financing condition to the tender offer or second-step merger, the release stated.
The transaction is conditioned upon the tender of a majority of Millennium's common stock as well as other customary closing conditions.
UBS Investment Bank advised Takeda, and Millennium was advised by Goldman, Sachs & Co.
Takeda said it expects the acquisition to enhance its earnings starting in the fiscal year ending March 2010.
"Millennium greatly strengthens Takeda's global oncology portfolio, led by the flagship product Velcade, and further enhances its pipeline with clinically differentiated, high-quality product candidates," Takeda president Yasuchika Hasegawa said in the release.
Takeda is a research-based pharmaceutical company located in Osaka, Japan.
| Acquirer: | Takeda Pharmaceutical Co. Ltd.
|
| Target: | Millennium Pharmaceuticals, Inc.
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| Announcement date: | April 10
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| Transaction total: | $8.8 billion
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| Price per share: | $25.00
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| Termination fee: | $247.3 million
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| Expected closing: | Second quarter of 2008
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| Stock price of target: | Nasdaq: MLNM: $16.35 on April 9
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