Takeda Pharmaceuticals has finally received the approval for being the shareholder of Shire. The deal is worth $59 billion for the takeover of the Shire, which is London-listed.
This is turn will create a pipeline for drugs which will be stronger yet will be saddled with massive debt.
Apart from this, the company will also become the most indebted one. The company has secured bank loans worth $30.9 billion which is in addition to the new shares issued by the company.
For the shareholders of Takeda, the high debt level of the company was a reason for top concern by the company. The shareholders gathered in Osaka for an extraordinary meeting. Osaka is in the western Japan.
The deal was decided by a majority voting in which despite the concerns almost 90 percent of them voted for the approval of the deal.
Satoshi Ito who is also a shareholder who is 75 years old and also abstained from the meeting stated to the Reuters that he wanted to keep his shares of Takeda in the future and that now he is worried about the downfall in the prices of the shares of the same.
On Wednesday there was a separate meeting of the shareholders of Shire which also garnered over-whelming support for this transaction.
Since Takeda has shown interest for the acquisition of Shire in March, its share prices have witnessed a downfall of about 25 percent. On Wednesday the shares closed up at 4,240yen which was 1 percent.
The share price of Shire has witnessed an increase of 46.95 pounds which is equivalent to 3.2 percent. The board of Takeda had a nine-month battle so as to persuade the shareholders of the merits related to the tie-ups.
Source: Reuters, SGTalk