Philip Morris Changes Vectura Bid To 'takeover Offer' From 'scheme Of Arrangement'

(RTTNews) - Philip Morris International Inc (PM) said Tuesday that it has switched its bid for the U.K. asthma drug maker Vectura Group Plc. (VEC.L) to a takeover offer from a scheme of arrangement. The move will increase the certainty of its execution.

The New York-based tobacco firm lowered the threshold of shareholder backing needed to succeed with its bid for Vectura as it faces off with Carlyle Group Inc. in a rare auction for control of Vectura. Philip Morris will need more than 50% of shareholder acceptances, instead of 75%.

Meanwhile, the U.K.'s takeover panel has given them a week to make their best offers for Vectura Group. The auction kicks off after the close of trading Tuesday.

On 9 July 2021, Philip Morris and Vectura announced that they had reached agreement on the terms of a recommended cash acquisition by Philip Morris, of the entire issued and to be issued ordinary share capital of Vectura for 150 pence for each Vectura share.

On 6 August 2021, Carlyle Group announced it had agreed the terms of an increased recommended cash offer for Vectura at a price of 155 pence per Vectura share.

On 8 August 2021 Philip Morris increased its cash offer for Vectura to a price of 165 pence per Vectura share.