Drug Royalty Announces Receipt Of Cash Offer Of C$3.05 Per Share From Inwest Investments Ltd.
TORONTO, ONTARIO--Drug Royalty Corporation Inc. (TSE:DRI) today
announced it has received an unsolicited offer (the "Offer") from
a wholly-owned subsidiary of Inwest Investments Ltd., a private
Vancouver-based holding company, for all of the shares of Drug
Royalty.
Under the terms of the offer, Inwest would offer Drug Royalty
shareholders C$3.05 per share in cash, valuing the Company at
C$133 million assuming the exercise of all stock options. The
Board of Directors of Drug Royalty, in consultation with its
financial advisors HSBC Securities (Canada) Inc., has reviewed the
Inwest Offer and considers that it is superior to the Cambridge
Antibody Technology ("CAT") offer under the terms of the support
agreement between CAT and Drug Royalty. The Inwest Offer has been
forwarded to CAT for their consideration. CAT has three business
days in which to amend its offer by offering at least equivalent
financial value to that of the Inwest Offer. If CAT agrees to
amend its offer, CAT and Drug Royalty will enter into an amended
support agreement relating to CAT's amended offer. If CAT elects
not to amend its offer, Drug Royalty will be entitled to enter
into a support agreement with Inwest relating to the Inwest Offer.
Drug Royalty entered into a support agreement with CAT on January
17, 2002. The CAT offer was subsequently mailed to Drug Royalty
shareholders, whereby CAT offered shares of CAT in exchange for
shares of Drug Royalty. The final exchange ratio, which sets the
number of CAT shares to be issued, is expected to be announced on
March 8, 2002. CAT must also indicate on March 8, 2002, whether
they intend to proceed with their offer.
The Inwest Offer would be subject to normal and customary
conditions and the signing of lock-up agreements with shareholders
of Drug Royalty holding in aggregate not less than 30% of the
fully diluted shares of Drug Royalty. The Offer would be subject
to 66 2/3% of shares being tendered into the bid and any necessary
regulatory approvals being obtained. The Inwest Offer would be by
way of a take-over bid and would be open for a minimum of 35 days
from the date of the mailing of the offering documents.
About Inwest Investments Ltd.
Inwest Investments is a private holding company. It owns
substantial real estate assets in Canada and recently sold its
controlling interest in Future Shop Ltd.
About Drug Royalty Corp.
Drug Royalty Corporation Inc. profits from the growth of the
global healthcare market by acquiring royalty streams generated
from pharmaceutical products. Drug Royalty has built an
international royalty portfolio of high-growth pharmaceutical
products.
The Company's common shares trade on The Toronto Stock Exchange
under the symbol DRI. This release and other information about
Drug Royalty Corporation Inc. can be found on their website at
www.drugroyalty.com.
Drug Royalty cannot guarantee that any predictions, forecasts and
other forward-looking statements in this news release will
materialize. Nor is it possible for the company to commit itself
to updating information about risks and other factors pertaining
to its business that might appear in this or any other
public-disclosure documents it publishes. |
