Business Standard

Takeda's Shire takeover to bring $963 million fee bonanza

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Reuters LONDON

By Ben Martin

LONDON (Reuters) - Banks, law firms and other advisers stand to earn up to $963 million (£749.3 million) in fees from Takeda Pharmaceutical's <4502.T> $62 billion (48.3 billion pounds) takeover of drugmaker Shire , according to documents for the deal published on Monday.

The deal will be the largest-ever overseas acquisition by a Japanese company and will lead to big payments to advisers working on both sides of the transaction.

The Japanese company expects spend about $733.4 million in fees and expenses in total, while London-listed Shire's costs will range between $216.5 million and $229.5 million, the companies disclosed in the documents.

 

Takeda's team of advisers includes investment banks Evercore , JP Morgan and Nomura while Shire's line-up includes Citigroup , Goldman Sachs and Morgan Stanley .

Takeda's single biggest expense will be its financing arrangements for the takeover which will cost it $386.6 million. That financing package includes a bridge loan of almost $31 billion from lenders including Sumitomo Mitsui Banking Corp and MUFG.

Takeda is also spending $111.7 million on financial and corporate broking advice and $44.2 million on lawyers, the documents show. Its other costs include $24.3 million for accounting advice and $6.3 million to public relations consultants.

Meanwhile, Shire estimates that it will pay banks as much as $150 million for their advice during the takeover, and up to $70 million to its lawyers.

Takeda still needs approval from European regulators and its investors for the deal to go ahead and said on Monday that it had scheduled a shareholder meeting for Dec. 5 for investors to vote on the takeover.

(Reporting by Ben Martin. Editing by Jane Merriman)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Nov 13 2018 | 12:19 AM IST

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