Philip Morris has invested more than $8.0 billion in smoke-free products since 2008 FABRICE COFFRINI AFP/File
Issued on: 16/09/2021
London (AFP)
US cigarette firm Philip Morris International on Thursday clinched a controversial takeover of British breathing inhaler manufacturer Vectura, despite fierce opposition from health campaigners and medical groups.
The Marlboro-maker agreed in July to pay £1.0 billion ($1.4 billion, 1.2 billion euros) as part of a broader push into healthcare.
Philip Morris International on Thursday said it had since won the necessary support from investors and secured regulatory approvals.
The acquisition is part of PMI's plans to expand beyond tobacco and nicotine and into a broader healthcare company.
"We have reached an important milestone in our acquisition of Vectura," PMI chief executive Jacek Olczak said in a statement.
The group has identified respiratory drug delivery as a key focus, under broader plans to generate at least $1.0 billion in annual net revenues from nicotine-free products by 2025.
"We are very excited about the critical role Vectura will play in our Beyond Nicotine strategy and look forward to working with Vectura's scientists and providing them with the resources and expertise to grow their business to help us achieve our goal," added Olczak.
Since 2008, the cigarette giant has invested more than $8.0 billion in smoke-free products, such as vaping, which it says is less harmful than smoking.
However, the Vectura takeover has faced heavy criticism from charities and medical groups.
More than 20 organisations, including anti-smoking charities and public health groups, together wrote to Vectura management urging it to reconsider the takeover on ethical and practical grounds.
Sarah Woolnough, chief executive of both Asthma UK and the British Lung Foundation, accused Vectura of seeking a quick profit.
"Vectura has sold out millions of people with lung disease, and instead prioritised short-term financial gain over the long-term viability of Vectura as a business," she said.
"Vectura is now owned by a tobacco company, and this could cause considerable problems, such as the firm being excluded from research and clinical networks."
She added that it "creates perverse incentives for Philip Morris International to sell more of its harmful products so they might then profit again through treating smoking-related diseases".
© 2021 AFP
Issued on: 16/09/2021
London (AFP)
US cigarette firm Philip Morris International on Thursday clinched a controversial takeover of British breathing inhaler manufacturer Vectura, despite fierce opposition from health campaigners and medical groups.
The Marlboro-maker agreed in July to pay £1.0 billion ($1.4 billion, 1.2 billion euros) as part of a broader push into healthcare.
Philip Morris International on Thursday said it had since won the necessary support from investors and secured regulatory approvals.
The acquisition is part of PMI's plans to expand beyond tobacco and nicotine and into a broader healthcare company.
"We have reached an important milestone in our acquisition of Vectura," PMI chief executive Jacek Olczak said in a statement.
The group has identified respiratory drug delivery as a key focus, under broader plans to generate at least $1.0 billion in annual net revenues from nicotine-free products by 2025.
"We are very excited about the critical role Vectura will play in our Beyond Nicotine strategy and look forward to working with Vectura's scientists and providing them with the resources and expertise to grow their business to help us achieve our goal," added Olczak.
Since 2008, the cigarette giant has invested more than $8.0 billion in smoke-free products, such as vaping, which it says is less harmful than smoking.
However, the Vectura takeover has faced heavy criticism from charities and medical groups.
More than 20 organisations, including anti-smoking charities and public health groups, together wrote to Vectura management urging it to reconsider the takeover on ethical and practical grounds.
Sarah Woolnough, chief executive of both Asthma UK and the British Lung Foundation, accused Vectura of seeking a quick profit.
"Vectura has sold out millions of people with lung disease, and instead prioritised short-term financial gain over the long-term viability of Vectura as a business," she said.
"Vectura is now owned by a tobacco company, and this could cause considerable problems, such as the firm being excluded from research and clinical networks."
She added that it "creates perverse incentives for Philip Morris International to sell more of its harmful products so they might then profit again through treating smoking-related diseases".
© 2021 AFP
Marlboro maker Philip Morris takes control of asthma inhaler maker Vectura
Simon Freeman
Thu, 16 September 2021,
Death: Eric Lawson in an advert for Marlboro cigarettes
Marlboro cigarette firm Philip Morris International (PMI) today sealed its controversial £1.1 billion takeover of asthma inhaler maker Vectura.
PMI has hoovered up a 29% stake in the health firm buying shares on the open market and received acceptances from another 45.6% to control of 74.8% of shares, it said today.
That is well above the 50% takeover threshold but just shy of the 75% required to delist Vectura from the London Stock Exchange.
The tobacco giant said: “All remaining conditions to the offer have been satisfied or, where applicable, waived. Accordingly… the offer has become unconditional in all respects.”
Hold-outs have been granted two weeks to accept the 165p-a-share bid.
If and when PMI has collected more than 90% of acceptances, minority shareholders will be obliged to fall into line in a squeeze-out.
PMI, which outbid US private equity firm Carlyle in a high-profile battle for control of the Chippenham-based medical manufacturer, said: “Shareholders who have not yet accepted the offer are urged to do so as soon as possible.”
CEO Jacek Olczak hailed the buy-up was “an important milestone” as the group diversifies away from cigarettes toward ‘wellness’ products.
That view is far from universal with the US tobacco giant’s bid sparking outcry among public health experts and medical charities.
Sarah Woolnough, the CEO of Asthma UK, today called on public health minister Jo Churchill to intervene.
Woolnough said: ““Vectura has sold out millions of people with lung disease, and instead prioritised short-term financial gain over the long-term viability of Vectura as a business.
“Vectura is now owned by a tobacco company, and this could cause considerable problems, such as the firm being excluded from research and clinical networks.
“It creates perverse incentives for Philip Morris International to sell more of its harmful products so they might then profit again through treating smoking-related diseases.
“We call on the Government to stand by its commitment to the World Health Organisation framework convention on tobacco control to prevent this happening.”
AJ Bell’s Danni Hewson said: “"Despite the ethical outcry, Vectura shareholders have succumbed to Big Tobacco’s big pockets.
"However good Phillip Morris’ intentions the bottom line is with this acquisition it’s playing both sides, making money from tobacco which makes people sick and inhalers which help them feel better.
“This takeover has been uncomfortable. It’s posed difficult questions and many people won’t like the answer that’s been delivered."
Major investors today maintained a public silence over the deal. Axa, TIG Advisors and Berry Street, who between them hold 11% per cent of Vectura’s shares, had previously given irrevocable undertakings of support for Carlyle's rival offer.
Simon Freeman
Thu, 16 September 2021,
Death: Eric Lawson in an advert for Marlboro cigarettes
Marlboro cigarette firm Philip Morris International (PMI) today sealed its controversial £1.1 billion takeover of asthma inhaler maker Vectura.
PMI has hoovered up a 29% stake in the health firm buying shares on the open market and received acceptances from another 45.6% to control of 74.8% of shares, it said today.
That is well above the 50% takeover threshold but just shy of the 75% required to delist Vectura from the London Stock Exchange.
The tobacco giant said: “All remaining conditions to the offer have been satisfied or, where applicable, waived. Accordingly… the offer has become unconditional in all respects.”
Hold-outs have been granted two weeks to accept the 165p-a-share bid.
If and when PMI has collected more than 90% of acceptances, minority shareholders will be obliged to fall into line in a squeeze-out.
PMI, which outbid US private equity firm Carlyle in a high-profile battle for control of the Chippenham-based medical manufacturer, said: “Shareholders who have not yet accepted the offer are urged to do so as soon as possible.”
CEO Jacek Olczak hailed the buy-up was “an important milestone” as the group diversifies away from cigarettes toward ‘wellness’ products.
That view is far from universal with the US tobacco giant’s bid sparking outcry among public health experts and medical charities.
Sarah Woolnough, the CEO of Asthma UK, today called on public health minister Jo Churchill to intervene.
Woolnough said: ““Vectura has sold out millions of people with lung disease, and instead prioritised short-term financial gain over the long-term viability of Vectura as a business.
“Vectura is now owned by a tobacco company, and this could cause considerable problems, such as the firm being excluded from research and clinical networks.
“It creates perverse incentives for Philip Morris International to sell more of its harmful products so they might then profit again through treating smoking-related diseases.
“We call on the Government to stand by its commitment to the World Health Organisation framework convention on tobacco control to prevent this happening.”
AJ Bell’s Danni Hewson said: “"Despite the ethical outcry, Vectura shareholders have succumbed to Big Tobacco’s big pockets.
"However good Phillip Morris’ intentions the bottom line is with this acquisition it’s playing both sides, making money from tobacco which makes people sick and inhalers which help them feel better.
“This takeover has been uncomfortable. It’s posed difficult questions and many people won’t like the answer that’s been delivered."
Major investors today maintained a public silence over the deal. Axa, TIG Advisors and Berry Street, who between them hold 11% per cent of Vectura’s shares, had previously given irrevocable undertakings of support for Carlyle's rival offer.
SEE
No comments:
Post a Comment