Myovant Sciences Rejects Sumitovant/Sumitomo Pharma Buyout Offer Of $2.5B

Myovant Sciences Ltd MYOV rejected a $2.5 billion takeover offer from Sumitovant Biopharma Ltd and Sumitomo Pharma Co., Ltd, saying that the offer undervalues the company.
Myovant Sciences confirmed that it received a preliminary, non-binding proposal from Sumitovant Biopharma and Sumitomo Pharma Co., Ltd. to acquire the remaining shares of the Company that Sumitovant does not currently hold for a price of $22.75 per share in cash.
Sumitovant currently holds about 52% of the outstanding shares of the company.
Myovant said its Special Committee determined that the offer significantly undervalues the company and, therefore, is not in the best interests of the company or its minority shareholders.
The Special Committee remains open to considering any improved proposal that reflects the full and fair value of the company and is otherwise in the best interests of the company and its shareholders and is prepared to engage further with Sumitomo regarding any such proposal, Myovant said in a statement.
In a separate press release, Sumitomo Pharma said the proposed transaction, if completed, would result in Myovant being delisted from the NYSE.
According to Sumitomo Pharma, the proposed acquisition consideration represents an equity value for Myovant of $2.4 billion and an enterprise value of $2.5 billion.
The proposed per-share consideration represents a premium of about 27% to Myovant's closing share price on September 30.
Price Action: MYOV shares are up 29.1% at $23.18 during the premarket session on the last check Monday.

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Myovant Sciences Rejects Sumitovant/Sumitomo Pharma Buyout Offer Of $2.5B