Biopharmaceutical company Theravance, Inc. (THRX: Quote) on Monday said it has entered into a stock purchase agreement, under which its drug development partner GlaxoSmithKline Plc (GSK: Quote, GSK.L) agreed to acquire 10 million of its shares at a price of $21.2887 per share. The total investment for the acquisition would be $212.89 million.
Following the acquisition, British drug giant GSK would own around 25.81 million shares of Theravance common stock, which would increase GSK's ownership to approximately 26.8 percent from about 18.3 percent of Theravance capital.
The company noted that the price per share was determined based upon a 7.5 percent premium to the volume-weighted average price per share of Theravance stock over the five-day period ending March 30, which was $19.8034.
The deal would complete shortly after the Theravance Annual Meeting, subject to certain closing conditions, including approval of Theravance's stockholders.
GSK expects to continue to account for its total stake in Theravance as an investment held at fair value, due to the existing governance agreement which places limitations on GSK's voting rights.
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by RTT Staff Writer
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