Philip Morris enters tender for Vectura

 The Vectura board have unanimously recommended PMI's 165p-per-share offer to shareholders

- The board cited PMI’s superior cash price offered to Vectura shareholders, and the benefit to stakeholders from PMI's significant financial resources, commitment to enhanced research and development, and autonomy as factors contributing to their decision

Philip Morris International Inc. (PMI) (NYSE: PM) today announced it has published an offer document with U.K.-based Vectura Group plc (Vectura) (LSE: VEC) in connection with the recommended cash offer to acquire the inhaled therapeutics company. Under the terms of the acquisition, Vectura shareholders would be entitled to receive 165 pence per share, a 60% premium to the ex-dividend closing price of 103 pence per Vectura share on May 25, 2021.1

"PMI’s acquisition of Vectura is part of our long-term strategy to transform PMI by investing in scientific excellence and leveraging its capabilities and expertise," said PMI’s Chief Executive Officer, Jacek Olczak. "Our investment will accelerate the development and delivery of inhaled therapeutics to address many of today’s unmet medical needs. We look forward to working with Vectura’s great people as we embark on the next stage of our transformation."

PMI’s proposed acquisition of Vectura is part of its long-term strategy, as outlined in its 2020 Integrated Report and will provide support for Vectura’s continued growth as:

- PMI will build on its leading scientific capabilities to develop products and services that go Beyond Nicotine. PMI aims to achieve at least $1 billion in annual net revenues from Beyond Nicotine sources in 2025.

- PMI’s business model and strategy are driven by a long-term commitment to the transformation of its business and not a search for short-term gains and efficiency. Since 2008, PMI has invested $8.1 billion in the research, development, and commercialization of new smoke-free products for adults who would otherwise continue to smoke. PMI’s track record of investing in innovation exemplifies its commitment to invest the time and resources it takes to allow for scientific innovation of better products. In a 2017 letter to shareholders, PMI reaffirmed its commitment to fundamentally change its business.

The transaction value represents a multiple of around 15 times Vectura’s 2020 EBITDA.

The Offer will initially remain open for acceptance until 1:00 p.m. (London time) on September 15, 2021.

https://finance.yahoo.com/news/philip-morris-international-enters-tender-170100360.html