Neurocrine Biosciences to acquire Diurnal

Shares of UK-based Diurnal (LSE: DNL) shot up 134% to 26.35 pence this morning, after the company announced it has reached agreement on the terms of a recommended cash acquisition under which US neurology specialist Neurocrine Biosciences (Nasdaq: NBIX) will acquire the entire issued and to be issued ordinary share capital of Diurnal. The acquisition is to be effected by means of a scheme of arrangement under Part 26 of the Companies Act.

The acquisition values the entire issued and to be issued ordinary share capital of Diurnal at approximately £48.3 million ($57 million). Diurnal shareholders will be entitled to receive 27.5 pence in cash for each of their Diurnal shares, representing a premium of around 144% on the closing price on August 26, and 151% on the weighted average closing price of 10.93 pence for the three months ended on the latest practicable date.

The Diurnal directors, who have been so advised by Panmure Gordon as to the financial terms of the acquisition, consider the terms to be fair and reasonable. In providing its advice, Panmure Gordon has taken into account the commercial assessments of the Diurnal directors. Panmure Gordon is providing independent financial advice to the Diurnal directors for the purposes of Rule 3 of the Code.