Myovant stock pops as Sumitovant to acquire remaining stake for $1.7B
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Japan's Sumitovant Biopharma is acquiring the remaining 48% stake in Myovant Sciences (NYSE:MYOV) for $1.7B, which it currently does not own to take the London-based women's health company private.
Sumitovant, a unit of Sumitomo Pharma (OTCPK:DNPUF), will acquire all outstanding shares of Myovant not already owned by the company for $27 per share in cash. This corresponds to a total transaction value of $1.7B, and a total company value of $2.9B.
Sumitovant noted that it currently beneficially owns 52% of Myovant.
"By making Myovant a wholly owned subsidiary of Sumitovant, we believe that we will be able to accelerate implementation of management strategies that make full use of cash flow generated by ORGOVYX and MYFEMBREE for sustained growth of the Sumitomo Pharma Group," said Sumitomo CEO Hiroshi Nomura.
The companies said the deal was recommended by special committee of Myovant's independent directors and approved by myovant's board.
The transaction will be financed through a combination of cash on hand and external debt financing.
The transaction is expected to close in Q1 2023, subject to conditions, including regulatory approvals and approval of by Myovant shareholders.
After the merger is complete, Myovant's shares will no longer be listed on the New York Stock Exchange.
MYOV +7.58% to $26.40 premarket Oct. 24
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