Roche: Shareholders approve 20.7 billion acquisition by Novartis of its stake in the company

Roche shareholders overwhelmingly voted in favor of the $ 20.7 billion deal to buy almost a third of Novartis’ voting rights, the Swiss pharmaceutical company said.

Roche convened an extraordinary general meeting to resolve issues related to its plan to divest the two Basel-based pharmaceutical companies, which have been linked by the investment for two decades.

The shareholders approved the interim financial statements of the company on October 31, with a 100% majority, Roche stressed.

They also supported the cancellation plan of the 53.3 million Shares purchased, with a 99.85% majority.

As a result, the requirements of corporate repurchase legislation have been met, Roche said. The closing of the repurchase agreement is expected to take place in early November 2021.

“Today’s decisions of the extraordinary general meeting are in the best economic and strategic interest of Roche”, stressed the president of Roche, Christoph Franz.

“As a result, we will be in an even better position to contribute to the health of people around the world,” he added.

Novartis earlier this month agreed to sell 53.3 million shares of Roche Shares for $ 388.9 a share, a price that reflects the weighted average of non-voting stock certificates in the 20 trading days until November 2.

The repurchase had to obtain the approval of the shareholders of a capital reduction by canceling the shares purchased and the interim financial statements prepared for the transaction.

Novartis’ involvement began in 2001, when Swiss activist investor Martin Ebner, known for orchestrating the merger created by the banking giant UBS, offered his stake in Roche, its rival in the same city, out of frustration with the rejected proposals.

The Roche president said earlier this month that the deal would give his company more strategic flexibility, as Roche could now make plans without the need for Novartis approval.