Takeda's Shire takeover to bring $963 million fee bonanza
LONDON (Reuters) - Banks, law firms and other advisers stand to earn up to $963 million in fees from Takeda Pharmaceutical’s (4502.T) $62 billion takeover of drugmaker Shire (SHP.L), according to documents for the deal published on Monday.
The deal will be the largest-ever overseas acquisition by a Japanese company and will lead to big payments to advisers working on both sides of the transaction.
The Japanese company expects spend about $733.4 million in fees and expenses in total, while London-listed Shire’s costs will range between $216.5 million and $229.5 million, the companies disclosed in the documents.
Takeda’s team of advisers includes investment banks Evercore (EVR.N), JP Morgan (JPM.N) and Nomura while Shire’s line-up includes Citigroup (C.N), Goldman Sachs (GS.N) and Morgan Stanley (MS.N).
Takeda’s single biggest expense will be its financing arrangements for the takeover which will cost it $386.6 million. That financing package includes a bridge loan of almost $31 billion from lenders including Sumitomo Mitsui Banking Corp and MUFG.
Takeda is also spending $111.7 million on financial and corporate broking advice and $44.2 million on lawyers, the documents show. Its other costs include $24.3 million for accounting advice and $6.3 million to public relations consultants.
Meanwhile, Shire estimates that it will pay banks as much as $150 million for their advice during the takeover, and up to $70 million to its lawyers.
Takeda still needs approval from European regulators and its investors for the deal to go ahead and said on Monday that it had scheduled a shareholder meeting for Dec. 5 for investors to vote on the takeover.
Reporting by Ben Martin. Editing by Jane Merriman
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