GlaxoSmithKline To Acquire ID Biomedical Corporation
GlaxoSmithKline plc and ID Biomedical Corporation announced a definitive agreement for GSK to acquire ID Biomedical. ID Biomedical has facilities in Canada and in the United States. GSK's proposed acquisition of ID Biomedical reflects its continuing commitment to address the public health need for increased supply of influenza vaccines. ID Biomedical is currently in the process of expanding and upgrading its Canadian manufacturing facilities, which are expected, beginning in 2007, to produce around 75 million doses per year of ID Biomedical's Fluviral egg based influenza vaccine.
ID Biomedical will become a wholly-owned subsidiary of GSK. Under the terms of this agreement, the shareholders of ID Biomedical will be entitled to receive CDN$ 35 per share for a value of approximately CDN$1.7 billion (US$ 1.4 billion-GB pnds stlg 0.8 billion). This represents a premium of 13 percent over the closing price of the shares on 6 September 2005, and a premium of 30 percent over the 20-day average share price. At closing, GSK will also assume responsibility for ID Biomedical's net debt which was US$77 million at June 30, 2005. In addition, upon execution of the agreement, GSK has agreed to loan ID Biomedical up to US$120 million to repay term debt and finance its cash requirements to the anticipated closing date. The acquisition, which has been approved unanimously by both GlaxoSmithKline and ID Biomedical's Boards of Directors, is subject to the approval of ID Biomedical's shareholders, applicable regulatory clearances and certain other conditions. The transaction is expected to close by the end of 2005 or early 2006.
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