Vectura and Skyepharma plan merger valued at over £440 million

The boards of directors of UK based Vectura (LSE: VEC) and Skyepharma (LSE: SKYE) have reached agreement on the terms of a recommended merger, aiming to create a mid-sized company focused on the respiratory therapy sector.

News of the proposed deal sent the shares of both companies higher, with Skyepharma up 4.0% at 409.25 pence by 2am (having hit a high of 425 pence), and Vectura up 2.1% at 149.70 pence.

It is intended that the merger be implemented by way of a scheme of arrangement of Skyepharma under Part 26 of the Companies Act, under which Vectura will acquire the entire issued and to be issued ordinary share capital of Skyepharma. Under the terms of the merger, Skyepharma shareholders will be entitled to receive 2.7977 new Vectura shares for every share of Skyepharma.