By Ian Walker 
 

Philip Morris International Inc. said Tuesday that it has switched its 1.02 billion-pound ($1.41 billion) acquisition of Vectura Group PLC to a takeover offer from a scheme of arrangement.

The U.S. tobacco company said it believes a takeover offer increases the certainty of its acquisition of the U.K. pharmaceutical company proceeding ahead of the U.K. Takeover Panel auction process. A takeover offer is conditional upon a certain level of acceptances being received whereas a scheme of arrangement needs both court and shareholder approval.

The terms of the offer remain at 165 pence for each Vectura share held.

On Monday the U.K. Takeover Panel said it will start an auction process for Vectura after Philip Morris raised its offer for the company above that of a rival offer from Carlyle Europe Partners V.

The takeover panel said that given neither offer for the pharmaceutical company was final and that both may be revised upward, it will hold auction procedure beginning Tuesday.

On Monday, Philip Morris raised its offer to GBP1.02 billion, trumping Carlyle's offer made on Friday of GBP958 million.

The auction will last for five days of public bidding, and Vectura, Carlyle and Philip Morris have each agreed to the procedure.

 

Write to Ian Walker at ian.walker@wsj.com

 

(END) Dow Jones Newswires

August 10, 2021 02:49 ET (06:49 GMT)

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