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Highlights
- Mayne Pharma investors overwhelmingly support $672M Cosette acquisition
- Legal battle over deal termination to unfold in September
- Mayne Pharma’s stock trades below the agreed acquisition value
Mayne Pharma Group Ltd (ASX:MYX), a pharmaceutical company listed among the ASX200 stocks, has received strong shareholder backing for its proposed $672 million acquisition by US-based Cosette Pharmaceuticals. This development comes as both companies prepare to face off in court over disputed termination notices tied to the deal.
At a recent vote, 99.06% of shareholders present — representing 89.64% of the company’s ownership — voted in favour of the acquisition, signaling robust investor support for the transaction. However, the process remains complicated, with the deal’s future to be determined in upcoming legal proceedings.
Despite the optimism reflected in the shareholder vote, Mayne Pharma shares were trading at $5.19 at 11:22am AEST, slightly lower by 0.6% for the session and well below the proposed acquisition price of $7.40 per share, as stipulated in the scheme implementation deed signed in February.
A critical milestone in the acquisition journey is now set for September. On 9 September, the Supreme Court of New South Wales is scheduled to evaluate the validity of two termination notices issued by Cosette Pharmaceuticals. The outcome will influence whether the court grants approval for the transaction on 18 September.
Cosette's termination efforts hinge on two primary allegations. First, it claims a "material adverse change" has occurred within Mayne Pharma. Second, the company argues that Mayne has breached certain representations and warranties included in the agreement. Cosette has also lodged a cross-claim accusing Mayne of engaging in misleading or deceptive conduct under Australian Consumer Law.
Mayne Pharma firmly denies all claims raised by Cosette, including the legitimacy of the termination notices and allegations contained in the cross-claim.
This legal showdown casts a layer of uncertainty over the acquisition’s completion. If the court upholds Cosette’s termination notices, the deal may not proceed as anticipated, regardless of the overwhelming shareholder endorsement.
This ongoing corporate saga involving (MYX) is of particular interest to market watchers, especially within the ASX200 segment, where strategic M&A activities continue to reshape the pharmaceutical and healthcare landscape.
