Philip Morris, the Swiss-American multinational cigarette and tobacco manufacturing company, announced that it increased its offer for Vectura Group PLC. Philip Morris is willing to spend £1.02 billion for the British pharmaceutical business.
Under the new deal, shareholders of Vectura will receive 165 pence/share in cash, up from Morris' previous offer of 150 pence a share, topping Carlyle Europe Partners V of 155 pence apiece announced Friday.
Through this deal, Philip Morris is looking to push back against critics, saying that the Vectura deal was part of a larger project meant to "build on its leading scientific capabilities to develop products and services that go Beyond Nicotine". The project was first announced in 2019.
The statement came after Vectura revealed that it had agreed to a £958 million takeover by Murano Bidco Ltd, a company indirectly controlled by funds managed by Carlyle Europe Partners V, and withdrew its recommendation for Phillip Morris' proposal.
According to Vectura, which is specialized in inhaled medicines, Carlyle offers better value to shareholders than Morris and puts the company in a better position to meet its current strategy.
Sources: marketwatch.com, reuters.com