Australian Court Dismisses Cosette Appeal to Drop Mayne Pharma Takeover
Reuters reported on October 14 that Australia's New South Wales Court of Appeal on Wednesday rejected Cosette Pharmaceuticals' bid to terminate its takeover of Mayne Pharma, upholding an earlier ruling that the US-based drugmaker had no valid grounds to abandon the deal.
Cosette bid A$7.40 per share for Mayne in February last year but later tried to back out, saying a deterioration in Mayne's financial performance constituted a material adverse change under the scheme implementation deed. The court found the decline in Mayne's sales performance was insufficient to meet that threshold, said cost savings made by the ASX-listed firm had to be taken into account when assessing the earnings impact, rejected Cosette's claim that Mayne had misled it over expected 2025 earnings, and ordered Cosette to pay the legal costs of the appeal.
The takeover is valued at A$672 million ($469.7 million). Federal Treasurer Jim Chalmers blocked the deal in November last year on national interest grounds, and Mayne Pharma entered a trading halt earlier on Wednesday pending the decision.
Source: GSM · USA (original Chinese edition)
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