Pfizer lifts offer on ResApp deal

03/08/2022 - 16:17

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The agreement between Pfizer and takeover target ResApp has had another revision with an increased cash offer of 20.8 cents per share.

Pfizer lifts offer on ResApp deal
ResApp board of directors include chief executive Tony Keating (pictured).

The agreement between Pfizer and takeover target ResApp has had another revision with an increased cash offer of 20.8 cents per share.

WA-founded medical technology company ResApp Health announced on the ASX today that Pfizer has agreed to increase the proposed consideration from 14.6 cents to 20.8 cents per ResApp share.

Pfizer's initial bid in April valued the business at roughly $100 million with the new terms now having an overall equity value of about $180 million.

Today's announcement said the proposed consideration matched the preferred value and within the assessed value range of 14.6 cents and 27.9 cents per share as determined by BDO Corporate Finance WA independent report.

The ResApp announcement included its directors' recommendation for shareholders to support the updated scheme in absence of a superior proposal.

"The directors of ResApp unanimously recommend that ResApp shareholders vote in favour of the revised Scheme ... and subject to the Independent Expert concluding and continuing to conclude in its final Independent Expert’s report that the revised scheme is in the best interests of ResApp shareholders," it said.

ResApp board of directors include Roger Aston, Tony Keating, Brian Leedman, Michael Stein and Chris Ntoumenopoulos.

Pfizer launched a takeover bid for ResApp in April with a drafted scheme for Pfizer to pay 11.5 cents per share to wholly acquire the company.

In June, ResApp informed the market that Pfizer had agreed to increase the previous scheme drafted in April from 11.5 cents in cash per share to 20.7 cents or 14.6 cents per share in cash if the app did not meet certain performance requirements in a data confirmation study.

The scheme consideration was revised to 14.6 cents per ResApp share in cash, representing an equity value of $127 million, as a study showed the data was not satisfied.

ResApp shares were up 50 per cent, trading at around 18 cents, as of 4.10pm AEST.

 

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