Mayne Pharma Group Ltd (ASX: MYX) shares are catching the eye on Friday with a very strong gain.
In morning trade, the ASX 300 healthcare stock is up 34% to $7.25.
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Why is this ASX 300 healthcare stock rocketing?
Investors have been scrambling to buy the company's shares this morning after it revealed that it has accepted a takeover offer.
According to the release, the company has entered into a scheme implementation deed with Cosette Pharmaceuticals that will see the latter acquire 100% of the shares in Mayne Pharma by way of a scheme of arrangement.
The two parties have agreed a price of $7.40 per share, which represents a 36.8% premium to where the ASX 300 healthcare stock last traded.
Cosette Pharmaceuticals is a US based pharmaceutical company with a portfolio of products in women's health and dermatology.
The company highlights that it has a history in the manufacturing of complex dosage forms including topical creams, ointments, oral liquids/solutions, and suppositories. It has corporate and manufacturing facilities in New Jersey and North Carolina and is supported by 350 plus team members across all functional areas.
The release notes that Cosette is backed by Avista Healthcare Partners, a healthcare focused private equity firm, and funds managed by Hamilton Lane (NASDAQ: HLNE)., a private markets investment management firm.
Unanimously recommended
The Mayne Pharma board advised that it unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert's report.
The company's two largest shareholders, Viburnum Funds and Bruce Mathieson, who collectively own a 14.1% stake, intend to vote in favour of the scheme.
'A pivotal moment'
The ASX 300 healthcare stock's chair, Frank Condella, was pleased with the deal. He said:
We are pleased that Cosette has recognised significant value in Mayne Pharma, particularly in our women's health and dermatology businesses, and the offer provides shareholders with the opportunity to receive cash value at a significant premium. The Board believes that the proposed transaction is in line with the Board's priority to deliver value to our shareholders, and also provides significant benefits for our broader stakeholders.
This sentiment was echoed by the company's CEO, Shawn Patrick O'Brien. He said:
Today marks a pivotal moment in Mayne's journey to improve patient access to life-enhancing medications. Attracting an offer from a strategic buyer who is active in the US Dermatology and Women's Health markets, such as Cosette, reflects the excellent work our teams have been doing to strengthen our company over the last year and more.
Having broadened our portfolio in Dermatology and Women's Health, and improved patient access through a refined US channel strategy, we have executed against our corporate strategies with precision. As we enter this new chapter, we do so as a stronger, more agile company.
