NEW YORK--(BUSINESS WIRE)--
Philip Morris International Inc. (NYSE / Euronext Paris: PM) announced today that Philip Morris Investments B.V. (PM Investments), an affiliate of PMI, entered into a Funding and Cooperation Agreement with Mitsubishi Tanabe Pharma Corporation (MTPC), a Japanese pharmaceutical company, to privatize Medicago Inc. (Medicago). If the proposed privatization is completed, the Canadian biopharmaceutical company will be de-listed from the Toronto Stock Exchange.
Under this agreement, both PM Investments and MTPC agreed to:
(i) cooperate with respect to the privatization of Medicago;
(ii) provide, on a pro rata basis, funds to effect the proposed privatization;
(iii) certain governance arrangements if the proposed privatization is completed; and
(iv) not pursue an acquisition of Medicago, other than pursuant to the Funding and Cooperation Agreement, during the term of the Funding and Cooperation Agreement.
The Funding and Cooperation agreement is terminable on the earliest of the closing of the proposed privatization, by mutual agreement in writing of both PM Investments and MTPC but at the latest on April 12, 2014. MTPC concurrently entered today into a separate agreement with Medicago providing for the proposed privatization.
PM Investments currently holds 98,608,800 common shares representing 38.5% of all of the issued and outstanding common shares of Medicago, when calculated on a non-fully diluted basis.
MTPC advised PM Investments that it is the beneficial owner of 15,385,000 common shares of Medicago, which represents 6.0% of all of the issued and outstanding common shares of Medicago, when calculated on a non-fully diluted basis.
After the privatization, Medicago will be owned 40% by PM Investments and 60% by MTPC.
Each common share of Medicago entitles the holder thereof to one vote. Accordingly, in the aggregate, PM Investments and MTPC beneficially own 113,993,800 common shares of Medicago, representing 44.5% of the votes attaching to the issued common shares of Medicago in the aggregate.
This news release is not an admission that MTPC and its affiliates own or control any described security or is a joint actor with PM Investments or any of its affiliates.
Philip Morris International Inc.
Philip Morris International Inc. (PMI) is the leading international tobacco company, with seven of the world’s top 15 international brands, including Marlboro, the number one cigarette brand worldwide. PMI’s products are sold in more than 180 markets. In 2012, the company held an estimated 16.3% share of the total international cigarette market outside of the U.S., or 28.8% excluding the People’s Republic of China and the U.S. For more information, see www.pmi.com.
- Investment & Company Information
- Philip Morris International
New York: +1 (917) 663 2233
Lausanne: +41 (0)58 242 4666
Lausanne: +41 (0)58 242 4500