Mayne Pharma (ASX:MYX) has revealed a letter from Australian Treasurer Jim Chalmers, sent to U.S.-based pharma giant Cosette, has outlined the government (via the FIRB) intend to reject the takeover deal, particularly because Cosette wants to shut down a Mayne-owned pharma manufacturing facility in Adelaide.
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While not all HotCopper users were completely happy – at least one bemoaned how anyone is expected to be attracted to invest in Australia, which is perhaps true – for Mayne, the situation is difficult.
For instance, in June, Cosette indicated it would get rid of Mayne’s SA manufacturing site as part of a fresh look at an earlier genesis of its takeover proposal; the story is further complicated by the fact Cosette tried to kill its own takeover, given it was binding to a degree; the NSW Supreme Court wouldn’t let it.
For its part, Mayne asserted on Friday that it has been trying to explain to Cosette for months now that shutting down the site would be a bad move. And apparently, the FIRB agree. Still, it sounds like Mayne mightn’t entirely agree.
“Mayne Pharma has sought Cosette’s consent to engage directly with FIRB in relation to communications made by Cosette to FIRB after Cosette purported to invalidly terminate the Scheme; such consent has not been provided,” Mayne wrote.
“Mayne Pharma has not been permitted to, and has not had, any direct communications with FIRB, the Treasurer or any other governmental agency in respect of the FIRB approval or the Salisbury site.”
Why, exactly, the company hasn’t just gone ahead and done that already – that it requires Cosette’s consent to do so is questionable – remains unclear, though maybe Mayne is just trying to keep its t’s crossed.
MYX last traded at $4.30/sh.
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