SAO PAULO (Reuters) – Brazilian pharmaceutical company EMS has offered to combine with rival Hypera, the companies said on Monday, a deal that would create the country’s largest player in the sector.
Hypera’s shares rose 0.4% following the news, after falling as much as 17.3% on Monday.
Hypera said in a securities filing that its board will assess the offer, including the hiring of external advisors.
Privately owned EMS proposed a tender offer for up to 20% of Hypera’s shares, valuing them at 30 reais each, as well as a stock swap.
The price represents a 16.9% premium over Hypera’s closing share price on Friday.
EMS said in its proposal, unveiled by Hypera on Monday, that it does not expect Brazil’s antitrust watchdog to impose restrictions that could affect the deal, based on analyses made by the firm’s law advisors.
Hypera’s shares fell as much as 17.3% on Monday after it revealed a plan to optimize its working capital, including reducing the deadline for customers to pay for its products.
EMS said it expects the deal to be confirmed within 30 days.
The combined company would be listed in Brazil, according to the offer.
(Reporting by Andre Romani in Sao Paulo; additional reporting by Luana Maria Benedito and Patricia Vilas Boas; editing by Gabriel Araujo and Richard Chang)
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