REG - PureTech Health PLC - Tender Offer
20/05/2024 07:00
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RNS Number : 0043P PureTech Health PLC 20 May 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE UK VERSION OF THE MARKET ABUSE REGULATION (EU 596/ 2014) AS IT FORMS PART
OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED.
20 May 2024
PureTech Health plc
Launch of Proposed $100 million Tender Offer at 250 pence per Ordinary Share
Notice of General Meeting
PureTech Health plc (http://www.puretechhealth.com/) (Nasdaq: PRTC, LSE: PRTC)
("PureTech" or the "Company"), a clinical-stage biotherapeutics company
dedicated to changing the lives of patients with devastating diseases, today
announces the opening of its proposed $100 million tender offer (the "Tender
Offer").
Tender Offer Highlights
· The Tender Offer opens today 20 May 2024. Subject to the terms and
conditions of the Tender Offer, the Company will purchase for cash a maximum
of $100 million in value of ordinary shares of one pence each in the capital
of the Company ("Ordinary Shares") (including Ordinary Shares represented by
the Company's American Depositary Shares each representing 10 Ordinary Shares
("ADSs")).
· The Tender Offer for the Company's Ordinary Shares will close at 1:00
p.m. London time on Thursday 20 June 2024 (the "Ordinary Share Closing Date"),
and the Tender Offer for the Company's ADSs will close at 5:00 p.m. New York
City time on Tuesday 18 June 2024 (the "ADS Closing Date"), unless the Tender
Offer is extended.
· The Company is offering to purchase up to 33,500,000 Ordinary Shares
(including Ordinary Shares represented by ADSs) representing approximately 12
percent of the Company's issued ordinary share capital as at 16 May 2024
(being the latest practicable date before publication of this announcement
("Latest Practicable Date")) at a fixed price of 250 pence per Ordinary Share
(equivalent to £25.00 per ADS) (the "Tender Price") up to a maximum aggregate
amount of $100 million. The maximum amount of $100 million will be translated
into a pounds sterling amount on the Ordinary Share Closing Date, and that
pounds sterling amount shall determine the maximum number of shares to be
accepted for payment in the Tender Offer.
· The Tender Price represents a premium of 25 percent to PureTech's
trailing volume weighted average price per Ordinary Share over the three days
prior to 19 March 2024, the date of the Company's initial announcement of the
Tender Offer proposals and a premium of 12.6 percent to the closing price of
222 pence per Ordinary Share on the Latest Practicable Date.
· If the full $100 million is not returned through the Tender Offer,
then, if there is sufficient surplus, the Company's board of directors
("Board") intends to return such surplus by way of a special dividend
following completion of the Tender Offer, without interest, less any
applicable withholding taxes and subject to market and industry conditions at
the time and any relevant legal restrictions (the "Special Dividend").
· Completion of the Tender Offer will be conditional, among other
things, on shareholder approval at a general meeting of the Company to be held
at 11:00 a.m. New York City time (4:00 p.m. London time) on 6 June 2024 at the
Company's offices at 6 Tide Street, Boston, Massachusetts, 02210, United
States (the "General Meeting").
· Full details of the Tender Offer are included in a circular to the
Company's Shareholders (the "Circular") which will be mailed to Shareholders
and ADS Holders today and available on a website set up by the Company for the
purposes of the Tender Offer. The website is available at
https://investors.puretechhealth.com/tender-offer
(https://eur05.safelinks.protection.outlook.com/?url=https%3A%2F%2Finvestors.puretechhealth.com%2Ftender-offer&data=05%7C02%7Cmartin.penn%40dlapiper.com%7C69ca0b0d95334f38392608dc76620066%7Ce855e7acc54640d299f7a100522010f9%7C1%7C0%7C638515411050881900%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=P9wnRaxyiO%2FwC55hxOG98nza0%2FwvJ%2BzrKrcDU2QrNbU%3D&reserved=0)
. Copies of the Circular will be submitted to the National Storage Mechanism
and will be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . The Circular will
also be included as an exhibit to the Schedule TO to be filed with the
Securities and Exchange Commission and will be available for inspection
at https://www.sec.gov. (https://www.sec.gov)
· SHAREHOLDERS AND ADS HOLDERS ARE ADVISED TO CONSULT WITH THEIR
PROFESSIONAL TAX ADVISORS IN CONNECTION WITH CERTAIN US FEDERAL WITHHOLDING
TAX CONSIDERATIONS DESCRIBED IN FURTHER DETAIL BELOW (SEE "Certain US Federal
Income Tax Considerations with Respect to the Tender Offer").
Structure of the Tender Offer
The Tender Offer will be implemented on the basis of Jefferies International
Limited ("Jefferies") acquiring, as principal, the successfully tendered
Ordinary Shares (including Ordinary Shares represented by ADSs) at the Tender
Price. In turn, Jefferies has the right to require the Company to purchase
such Ordinary Shares (including Ordinary Shares represented by ADSs) from it
at the same Tender Price pursuant to an option agreement entered into between
the Company and Jefferies (the "Option Agreement"). If Jefferies does not
exercise its right to require the Company to purchase such Ordinary Shares
(including Ordinary Shares represented by ADSs), the Company has the right to
require Jefferies to sell such Ordinary Shares (including Ordinary Shares
represented by ADSs) to it at the same price. The Company intends to cancel
the Ordinary Shares (including Ordinary Shares represented by ADSs) purchased
by it pursuant to the Tender Offer.
Shareholders can decide whether they want to tender all, some or none of their
Ordinary Shares or ADSs in the Tender Offer.
If the aggregate value at the Tender Price of all validly tendered Ordinary
Shares (including Ordinary Shares represented by ADSs) exceeds $100 million
(based on the applicable exchange rate of US dollars to pounds sterling on the
Ordinary Share Closing Date) or the number of validly tendered Ordinary Shares
(including Ordinary Shares represented by ADSs) exceeds 33,500,000 Ordinary
Shares, then not all of the Ordinary Shares (including Ordinary Shares
represented by ADSs) validly tendered will be accepted and purchased. In these
circumstances, tenders will be scaled down pro-rata to the total number of
Ordinary Shares (including Ordinary Shares represented by ADSs) so tendered by
that shareholder, such that the total cost of Ordinary Shares (including
Ordinary Shares represented by ADSs) purchased pursuant to the Tender Offer
does not exceed $100 million or the total number of validly tendered Ordinary
Shares (including Ordinary Shares represented by ADSs) does not exceed
33,500,000 Ordinary Shares.
Certain US Federal Income Tax Considerations with Respect to the Tender Offer
Shareholders and ADS Holders should consult their professional tax advisors in
connection with the Tender Offer.
Shareholders and ADS Holders should note that, due to the circumstances of its
formation and the application of Section 7874 of the United States Internal
Revenue Code of 1986, as amended ("Code"), the Company is treated as a US
domestic corporation for US federal income tax purposes. Accordingly, the
Company is subject to US federal income tax as if it were a US corporation,
and distributions made by the Company (including certain payments in respect
of the Tender Offer that are treated as distributions for US federal income
tax purposes) are generally treated as US-source dividends, as if the Company
were incorporated in the US. As a result, both US Holders and Non-US Holders
(each as defined in the Circular) may be subject to US federal income tax
withholding on receipt of cash proceeds from any tendered Ordinary Shares or
ADSs accepted in the Tender Offer and the Special Dividend (if any).
The attention of Shareholders and ADS Holders is drawn to Part VI of the
Circular, which provides a summary of certain material UK tax and US federal
income tax consequences for Shareholders and ADS Holders of accepting the
Tender Offer or receipt of the Special Dividend (if any).
All Shareholders and ADS Holders should receive a Section 302 Certification.
Copies of the Section 302 Certification, IRS Form W-9, and IRS Forms W-8, as
well the IRS instructions with respect to such IRS Forms, are also available
on the Microsite set up by the Company for the purposes of the Tender Offer.
The Microsite is available at
https://investors.puretechhealth.com/tender-offer
(https://investors.puretechhealth.com/tender-offer) .
In consultation with their professional tax advisors regarding their
individual circumstances, Shareholders and ADS Holders should complete the
Section 302 Certification and an IRS Form W-9 or applicable IRS Form W-8, as
applicable, in accordance with the instructions thereon. Shareholders and ADS
Holders should return the properly completed Section 302 Certification and the
IRS Form W-9 or applicable IRS Form W-8, as applicable, in accordance with the
instructions set forth the Circular, the Tender Form, the Letter of
Transmittal and the Section 302 Certification, as applicable. Part VI of the
Circular also provides additional information to Shareholders and ADS Holders
on the process for returning a Section 302 Certifications and an IRS Form W-9
or applicable IRS Forms W-8, as applicable.
The appropriate IRS Form W-9 or Form W-8 should be returned whether or not a
Shareholder plans to participate in the Tender Offer, if not previously
provided. IRS Form W-9 and IRS Form W-8 will also be relevant in connection
with the Special Dividend (if any).
This information is not tax advice, and the Company cannot advise you with
respect to taxes. Shareholders and ADS Holders should consult their
professional tax advisors, in particular regarding their individual tax
position and the exemptions or reductions of US withholding tax that may be
available to them. For more information, Shareholders and ADS Holders should
read the full text of this announcement of the Tender Offer, the Circular, the
Tender Form, and the Letter of Transmittal.
General Meeting
Implementation of the Tender Offer is conditional upon, amongst other things,
the approval of the shareholders of the resolution necessary to implement the
Tender Offer (the "Resolution"). For this purpose, the Company is convening
the General Meeting for 11 a.m. New York City time (4 p.m. London time) on 6
June 2024 to be held at 6 Tide Street, Boston, Massachusetts, 02210, United
States to consider and, if thought fit, pass the Resolution to approve the
terms on which the Tender Offer will be effected. A notice convening the
General Meeting is set out at the end of the Circular.
Participating in the Tender Offer
If you are a Shareholder and hold your Ordinary Shares in Certificated Form
and you wish to tender all or any of your Ordinary Shares, you should complete
the Tender Form in accordance with the instructions printed on it and in Part
V of the Circular and return it by post in the accompanying reply-paid
envelope (for use in the UK only) to the Receiving Agent, at the Pavilions,
Bridgewater Road, Bristol, BS99 6AH so as to be received by no later than 1:00
p.m. (London time) on Thursday 20 June 2024, together with your share
certificate(s) in respect of the Ordinary Shares tendered.
If you are a Shareholder and hold your Ordinary Shares in Uncertificated Form
and you wish to tender all or any of your Ordinary Shares, you should send the
TTE Instruction through CREST so as to settle by no later than 1:00 p.m.
(London time) on Thursday 20 June 2024.
Any ADS Holder who holds ADSs on the books of the Depositary who wishes to
tender pursuant to the Tender Offer should properly complete and duly execute
a Letter of Transmittal (or facsimile thereof), together with any required
signature guarantees and any other required documents, and deliver such
documents to the tender agent for the ADSs, Citibank, N.A. (the "Tender
Agent"), at the appropriate address set forth in the Letter of Transmittal so
as to be received no later than 5:00 p.m. (New York City time) on the ADS
Closing Date (unless the Tender Offer is extended). In addition, the ADRs
evidencing the tendered ADSs must be received by the Tender Agent at the
appropriate address or be delivered pursuant to the procedures for book-entry
transfer set forth below (and a confirmation of receipt of such transfer must
be received by the Tender Agent) so as to be received no later than 5:00 p.m.
(New York City time) on the ADS Closing Date.
If the ADSs are held through a broker, dealer, commercial bank, trust company
or other securities intermediary and the ADS Holder wishes to participate in
the Tender Offer, such ADS Holder should provide tender instructions in
accordance with the instructions provided by such intermediary in sufficient
time so as to ensure that such intermediary can provide such instructions to
the Tender Agent so as to be received no later than 5:00 p.m. (New York City
time) on the ADS Closing Date (unless the Tender Offer is extended).
Timetable
A summary expected timetable of principal events is set out in Appendix I to
this announcement.
Shareholder Helpline
If you have any questions about the procedure for tendering Ordinary Shares,
please call Computershare Investor Services PLC on +44 370 707 4040. Calls are
charged at the standard geographic rate and will vary by provider. Calls
outside the United Kingdom will be charged at the applicable international
rate. The helpline is open between 8:30 a.m. - 5:30 p.m., London time
Monday to Friday, excluding public holidays in England and Wales. Please note
that Computershare Investor Services PLC will be unable to give advice on the
merits of the Tender Offer or to provide financial, investment or taxation
advice.
The Information Agent with respect to the Tender Offer for ADSs and Ordinary
Shares in the United States is Georgeson LLC. If you are an ADS holder, an
ordinary shareholder, bank, broker or institutional holder in the United
States and have questions on how you can participate in the Tender Offer,
please call the Information Agent at (+1) 866 529 2770 (toll-free) and (+1)
781 896 6940 (from other countries) from 9 a.m. to 8 p.m. New York City time
Monday to Friday, and Saturday from 10 a.m. to 2 p.m. New York City time.
Contact:
PureTech Health plc
Public Relations
publicrelations@puretechhealth.com (mailto:publicrelations@puretechhealth.com)
Investor Relations
IR@puretechhealth.com (mailto:IR@puretechhealth.com)
Jefferies International Limited
Ed Matthews
+44 (0)20 7548 4107
ematthews1@jefferies.com (mailto:ematthews1@jefferies.com)
Jee Lee
+44 (0)20 7029 8545
Jee.Lee@jefferies.com (mailto:Jee.Lee@jefferies.com)
UK/EU Media
Ben Atwell, Rob Winder
+44 (0) 20 3727 1000
puretech@fticonsulting.com (mailto:puretech@fticonsulting.com)
US Media
Nichole Bobbyn
+1 774 278 8273
nichole@tenbridgecommunications.com
(mailto:nichole@tenbridgecommunications.com)
About PureTech Health
PureTech is a clinical-stage biotherapeutics company dedicated to giving life
to new classes of medicine to change the lives of patients with devastating
diseases. The Company has created a broad and deep pipeline through its
experienced research and development team and its extensive network of
scientists, clinicians and industry leaders that is being advanced both
internally and through its Founded Entities. PureTech's R&D engine has
resulted in the development of 29 therapeutics and therapeutic candidates,
including two that have received both U.S. FDA clearance and European
marketing authorization and a third (KarXT) that has been filed for FDA
approval. A number of these programs are being advanced by PureTech or its
Founded Entities in various indications and stages of clinical development,
including registration enabling studies. All of the underlying programs and
platforms that resulted in this pipeline of therapeutic candidates were
initially identified or discovered and then advanced by the PureTech team
through key validation points.
For more information, visit www.puretechhealth.com
(http://www.puretechhealth.com/) or connect with us on X (formerly Twitter)
@puretechh.
Additional Information for US Investors
The Tender Offer qualifies as a "Tier II" offer in accordance with Rule
14d-1(d) under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), and, as a result, is exempt from certain provisions of otherwise
applicable US statutes and rules relating to tender offers. US and English law
and practice relating to tender offers are different in certain material
respects. The Company intends to rely on the Tier II exemption from Rule
14e-1(c) on prompt payment where the Company will follow English law and
practice.
This communication is provided for informational purposes only and is neither
an offer to purchase nor a solicitation of an offer to sell any securities of
the Company pursuant to the Tender Offer or otherwise. The Tender Offer will
only be made pursuant to the Circular and other related materials filed as
part of the Tender Offer Statement on Schedule TO, in each case as may be
amended or supplemented from time to time. The Company's security holders are
advised to carefully read these documents, and any amendments to these
documents, in their entirety before making any decision with respect to the
Tender Offer, because these documents will contain important information. The
Company's security holders may obtain copies of these documents and other
documents filed with the SEC for free at the SEC's website at www.sec.gov
(http://www.sec.gov) . In addition, the Company will provide copies of such
documents free of charge to its security holders.
In accordance with normal market practice in the UK and pursuant to Rule
14e-5(b)(12) under the Exchange Act, the Company or its nominees or brokers or
Jefferies or its affiliates may from time to time make certain purchases of,
or arrangements to purchase Ordinary Shares outside the United States,
otherwise than pursuant to the Tender Offer, before or during the period in
which the Tender Offer remains open for acceptance, such as in open market
purchases at prevailing prices or privately negotiated purchases at negotiated
prices. Such purchases, or arrangements to purchase will comply with all
applicable rules in the UK, including the Listing Rules of the FCA and the
Admission and Disclosure Standards of the London Stock Exchange. Any
information about such purchases will be disclosed as required in the UK and
the US and, if required, will be reported via a Regulatory Information Service
and will be available to all investors (including US investors) on the London
Stock Exchange website at www.londonstockexchange.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements contained
in this press release that do not relate to matters of historical fact should
be considered forward-looking statements, including without limitation
statements that relate to our expectations around our therapeutic candidates
and approach towards addressing major diseases, our future prospects,
developments, and strategies, and statements regarding the intent, belief or
current expectations regarding the Tender Offer. The forward-looking
statements are based on current expectations and are subject to known and
unknown risks, uncertainties and other important factors that could cause
actual results, performance and achievements to differ materially from current
expectations, including, but not limited to, those risks, uncertainties and
other important factors described under the caption "Risk Factors" in our
Annual Report on Form 20-F for the year ended December 31, 2023 filed with the
SEC and in our other regulatory filings. These forward-looking statements are
based on assumptions regarding the present and future business strategies of
the Company and the environment in which it will operate in the future. Each
forward-looking statement speaks only as at the date of this press release.
Except as required by law and regulatory requirements, we disclaim any
obligation to update or revise these forward-looking statements, whether as a
result of new information, future events or otherwise.
Other Important Notices
This announcement is neither an offer to purchase nor a solicitation of an
offer to sell Ordinary Shares (including Ordinary Shares represented by ADSs).
The Tender Offer is made only pursuant to the Circular, the related Tender
Form with respect to the Ordinary Shares and the related Letter of Transmittal
with respect to the ADSs. The Tender Offer is not being made to, holders of
Ordinary Shares (including Ordinary Shares represented by ADSs) residing in
any jurisdiction in which the making of the Tender Offer would not be in
compliance with the laws of that jurisdiction. In any jurisdiction where the
securities, "blue sky", or other laws require the Tender Offer to be made by a
licensed broker or dealer, the Tender Offer will be deemed to be made on
behalf of Jefferies International Limited by one or more registered brokers or
dealers licensed under the laws of such jurisdiction.
Jefferies, which is authorised and regulated by the Financial Conduct
Authority in the United Kingdom ("FCA"), is acting exclusively for the Company
as financial advisor and broker in connection with the Tender Offer and is
not, and will not be, responsible to anyone other than the Company for
providing the protections afforded to its clients nor for providing advice in
connection with the Tender Offer or any other matters set out in this
announcement.
Apart from the responsibilities and liabilities, if any, which may be imposed
on Jefferies under the Financial Services and Markets Act 2000, as amended or
the regulatory regime established thereunder: (i) neither Jefferies or any
persons associated or affiliated with Jefferies accepts any responsibility
whatsoever or makes any warranty or representation, express or implied, in
relation to the contents of this announcement, including its accuracy,
completeness or verification or for any other statement made or purported to
be made by, or on behalf of it, the Company or the directors of the Company,
in connection with the Company and/or the Tender Offer; and (ii) Jefferies
accordingly disclaims, to the fullest extent permitted by law, all and any
liability whatsoever, whether arising in tort, contract or otherwise (save as
referred to above) which it might otherwise be found to have in respect of
this announcement or any such statement.
PureTech Health plc
Proposed capital return of $100 million by way of a Tender Offer at 250 pence
per Ordinary Share and Notice of General Meeting
1. INTRODUCTION
On 18 March 2024, the Company announced that it will receive approximately
$293 million gross proceeds from the sale of its remaining stake in Karuna
Therapeutics, Inc. ("Karuna") pursuant to the completed acquisition of Karuna
by Bristol Myers Squibb which has acquired all outstanding common stock of
Karuna.
On 19 March 2024, the Company announced a proposed capital return of $100
million to Shareholders by way of a Tender Offer and subsequent repurchase of
Ordinary Shares (including Ordinary Shares represented by ADSs) by the
Company at a fixed tender price of 250 pence per
Ordinary Share. The capital return of $100 million represents
approximately 14 percent of the Company's market capitalisation based on the
Company's closing share price as at 18 March 2024, being the date prior to the
announcement of the proposed Tender Offer.
The Company's $50 million share buyback program completed on 7 February 2024,
which, together with the proposed Tender Offer, would constitute $150 million
of capital returned to Shareholders, representing approximately 20 percent of
the Company's market capitalisation as at 16 May 2024, being the Latest
Practicable Date before publication of the Circular.
The fixed Tender Price of 250 pence per Ordinary Share (equivalent to £25.00
per ADS) represents:
• a premium of 25 percent to PureTech's trailing
volume weighted average price per Ordinary Share over the three days prior to
19 March 2024, the date of PureTech's initial announcement of the Tender Offer
proposals; and
• a premium of 12.6 percent to the closing price of
222 pence per Ordinary Share on the Latest Practicable Date.
Shareholders are not required to tender any or all of their Ordinary Shares
(including Ordinary Shares represented by ADSs) if they do not wish to do so.
There is no guarantee that the Tender Offer will return the full sum of $100
million to Shareholders. If the full $100 million is not returned through the
Tender Offer, then, if there is sufficient surplus, the Board intends to
return such surplus by way of a special dividend following completion of the
Tender Offer, without interest, less any applicable withholding taxes and
subject to market and industry conditions at the time and any relevant legal
restrictions (the "Special Dividend").
Shareholder approval for the maximum number of Ordinary Shares which may be
acquired and the fixed price at which Ordinary Shares may be acquired at a
General Meeting to be held at 11:00 a.m. (New York City time) (4:00 p.m.
(London time)) on 6 June 2024. The Notice of General Meeting is set out in the
Circular.
The Circular contains details of the procedure that should be followed by
those Shareholders and ADS Holders wishing to participate in the Tender Offer.
Shareholders and ADS Holders should note that any amounts paid to Shareholders
or ADS Holders in respect of the Tender Offer and the Special Dividend (if
any) may be subject to US withholding tax unless the appropriate certifying
forms can be provided by such Shareholder or ADS Holder to establish an
exemption from, or a reduction of, such US withholding tax.
Shareholders and ADS Holders should refer to Part VI of the Circular for
further information on the important tax considerations in respect of the
Tender Offer and Special Dividend (if any), together with instructions on the
arrangements to provide appropriate certifying forms.
2. TENDER OFFER
2.1 Background to and reasons for the Tender Offer
On 18 March 2024, the Company announced the completion of the sale of its
stocks in Karuna to Bristol Myers Squibb, Inc. ("BMS") for a total equity
value of approximately $14 billion (the "Transaction"). The Company received
approximately $293 million gross proceeds from the sale of its Karuna equity
position. In addition, the Company is eligible to receive further milestones
and royalty payments based on certain regulatory and commercial successes.
On 25 April 2024, the Company published its annual report and accounts for the
year ending 31 December 2023 ("2023 Annual Report"). The Annual Report
included an update on subsequent events following the financial year end up to
25 April 2024. The Company's performance and outlook has continued in line
with expectations since the publication of the 2023 Annual Report.
As stated in the 2023 Annual Report, the Company determines its capital
allocation with a measured approach that balances support for its current
internal and founded entity programs and the funding of future innovation,
with the goal of maximising Shareholder returns. The Board will assess ongoing
opportunities to improve Shareholder returns, including additional capital
returns to Shareholders from future monetisation events, while maintaining a
cash runway of at least three years to support its internal programs, founded
entities, future innovation and operational needs. The Board has determined
that the Tender Offer would be the most suitable way of returning a proportion
of the proceeds of the Transaction to Shareholders in a quick and efficient
manner, taking account of the relative costs, complexity and timeframes of the
possible methods available.
Subject to the passing of the Resolution by Shareholders at the General
Meeting, the Directors will give Shareholders the opportunity to tender
Ordinary Shares (including Ordinary Shares represented by ADSs) through the
Tender Offer for cash only. The Resolution will give the Directors authority
to acquire up to 33,500,000 Ordinary Shares at a fixed tender price of 250
pence per Ordinary Share (the "Tender Price").
Tenders will only be accepted at the Tender Price. Subject to satisfaction of
the Tender Conditions to the Tender Offer, Ordinary Shares which are
successfully tendered under the Tender Offer will be purchased at the Tender
Price.
If the full amount of the $100 million is not returned through the Tender
Offer, and if there is sufficient surplus, the Board intends to return such
surplus by way of the Special Dividend.
The Issued Ordinary Share Capital on the Latest Practicable Date was
270,761,077 Ordinary Shares (excluding 18,707,082 Ordinary Shares held in
treasury). If the Tender Offer is implemented in full, this will result in the
purchase and cancellation of up to 33,500,000 Ordinary Shares (including
Ordinary Shares represented by ADSs) (representing approximately 12 percent of
the Issued Ordinary Share Capital of the Company on the Latest Practicable
Date). Shareholders should note that the Issued Ordinary Share Capital numbers
referred to in this paragraph take no account of any dilution which may be
caused by the Share Plans, which is explained in further detail in the
Circular.
2.2 Benefits of the Tender Offer
The Board considered various options for returning cash to Shareholders and
determined that the Tender Offer, together with any subsequent Special
Dividend (if any), would be the most appropriate means of returning cash to
Shareholders. In particular:
· the Tender Offer provides those Shareholders who wish to
sell Ordinary Shares (including Ordinary Shares represented by ADSs) with the
opportunity to do so at a market-driven price with a premium as at the Latest
Practicable Date;
· the Tender Offer enables those Shareholders who do not
wish to receive capital at this time to maintain their full investment in the
Company;
· the Tender Price represents a premium of 25 percent to
PureTech's trailing volume weighted average price per Ordinary Share over the
three days prior to 19 March 2024, the date of PureTech's initial announcement
of the Tender Offer proposals and a premium of 12.6 percent to the closing
price of 222 pence per Ordinary Share on the Latest Practicable Date;
· the Tender Offer is available to all Shareholders
regardless of the size of their shareholdings; and
· the Tender Offer allows the Company to broaden the scope
of the return of capital to include Ordinary Shares held by those Shareholders
whose Ordinary Shares (including Ordinary Shares represented by ADSs) might
not be purchased by the Company through a share purchase programme.
2.3 Principal Terms of the Tender Offer
Jefferies will implement the Tender Offer by acquiring, as principal, the
successfully tendered Ordinary Shares (including Ordinary Shares represented
by ADSs) at the Tender Price. Ordinary Shares (including Ordinary Shares
represented by ADSs) purchased by Jefferies pursuant to the Tender Offer will
be purchased as principal and such purchases will be market purchases in
accordance with the provisions of the Act, the Prospectus Regulation Rules,
the Listing Rules, the rules of the London Stock Exchange, the Disclosure
Guidance and Transparency Rules and the Takeover Code. Immediately following
completion of the Tender Offer, Jefferies shall exercise its right to sell
such Ordinary Shares (including Ordinary Shares represented by ADSs) to the
Company, at the Tender Price, pursuant to the Option Agreement. If Jefferies
does not exercise its right to require the Company to purchase such Ordinary
Shares (including Ordinary Shares represented by ADSs), the Company has the
right to require Jefferies to sell such Ordinary Shares (including Ordinary
Shares represented by ADSs) to it at the Tender Price. Purchases of Ordinary
Shares by the Company pursuant to the Option Agreement will also be market
purchases in accordance with the provisions of the Act, the Prospectus
Regulation Rules, the Listing Rules, the rules of the London Stock Exchange,
the Disclosure Guidance and Transparency Rules and the Takeover Code.
All of the Ordinary Shares (including Ordinary Shares represented by ADSs)
purchased by the Company pursuant to the Option Agreement in connection with
the Tender Offer will be cancelled. Further details on the Option Agreement
are set out in Part VIII of the Circular.
Shareholders can decide whether they want to tender all, some or none of their
Ordinary Shares (including
Ordinary Shares represented by ADSs) in the Tender Offer.
As at the date of this announcement, it is proposed that a maximum of
33,500,000 Ordinary Shares (including Ordinary Shares represented by ADSs) be
purchased under the Tender Offer at the Tender Price, representing
approximately 12 percent of the Company's Issued Ordinary Share Capital as at
16 May
2024, being the Latest Practicable Date, for a maximum aggregate amount of
$100 million. The maximum amount of $100 million will be translated into a
pounds sterling amount on the Ordinary Share Closing Date, which pounds
sterling amount shall determine the maximum number of shares to be accepted
for payment in the Tender Offer.
Tenders in respect of Ordinary Shares may only be made at the Tender Price and
tenders of ADSs may only be made at the ADS Tender Price.
Each ADS represents 10 Ordinary Shares. Accordingly, the amount an ADS Holder
will receive for each ADS in respect of which the underlying Ordinary Shares
are successfully tendered under the Tender Offer will be an amount of £25.00
(twenty five pounds sterling), being ten times the Tender Price, with such
amounts to be converted by the Tender Agent from pounds sterling into US
dollars and paid to the ADS Holder in US dollars (the "ADS Tender Price"). For
illustrative purposes, the ADS Tender Price is equivalent to $31.68 per ADS
(each of which represents 10 Ordinary Shares), based on an exchange rate of
pounds sterling to US dollars of £1.00 to $1.2671 (being the exchange rate on
the Latest Practicable Date). The actual amount of US dollars such ADS Holder
receives will depend upon the exchange rate prevailing at the time the Tender
Agent converts the pounds sterling amount into US dollars.
ADS Holders should be aware that the US dollar/pound sterling exchange rate
that is prevailing on the date on which ADSs are tendered may be different
than the US dollar/pound sterling exchange rate prevailing at the time the
pounds sterling are converted into US dollars.
Successfully tendered Ordinary Shares that are accepted for payment will be
cancelled.
Shareholders do not have to tender any Ordinary Shares if they do not wish to
do so, and ADS Holders do not have to tender any ADSs if they do not wish to
do so.
ADS Holders should refer to Part VIII of the Circular.
The Tender Offer will close at 1:00 p.m. (London time) on Thursday 20 June
2024 (and for ADS Holders at 5:00 p.m. (New York City time) on Tuesday 18 June
2024) and tenders received after those times (as appropriate) will not be
accepted (unless the Tender Offer is extended).
Shareholders should note that, once tendered, Ordinary Shares may not be sold,
transferred, charged, or otherwise disposed of other than in accordance with
the Tender Offer.
Shareholders who are in any doubt as to the contents of this announcement or
as to the action to be taken should immediately consult their stockbroker,
bank manager, solicitor, accountant, or other independent financial advisor
authorised under FSMA, if taking advice in the UK or, if resident in another
jurisdiction, from another appropriately authorised independent financial or
professional advisor.
2.4 Number of Ordinary Shares to be purchased
If the aggregate value at the Tender Price of all validly tendered Ordinary
Shares (including Ordinary Shares represented by ADSs) exceeds $100 million
(based on the applicable exchange rate of US dollars to pounds sterling on the
Ordinary Share Closing Date), or the number of validly tendered Ordinary
Shares (including Ordinary Shares represented by ADSs) exceeds 33,500,000
Ordinary Shares, acceptances of validly tendered Ordinary Shares (including
Ordinary Shares represented by ADSs) will be scaled-down pro-rata to the total
number of Ordinary Shares (including Ordinary Shares represented by ADSs) so
tendered by that Shareholder, as described in paragraphs 2.14 and 2.15 of Part
V of the Circular. Accordingly, where scaling-down applies, there is no
guarantee that all of the Ordinary Shares (including Ordinary Shares
represented by ADSs) which are tendered will be accepted for purchase.
Successfully tendered Ordinary Shares will be purchased free of commission and
dealing charges.
Any Ordinary Shares repurchased by the Company from Jefferies following the
purchase by Jefferies will be cancelled. Any rights of Shareholders who choose
not to tender their Ordinary Shares or ADSs will be unaffected.
Subject to any applicable law and regulatory requirements (including the rules
and regulations of the London Stock Exchange and SEC), the Company reserves
the right at any time prior to the expiration of the Tender Offer, and with
the prior consent of Jefferies, to extend the period during which the Tender
Offer is open, based on market conditions and/or other factors.
2.5 Circumstances in which the Tender Offer may not proceed
There is no guarantee that the Tender Offer will take place. The Tender Offer
is conditional on, among other things:
A. the passing of the Resolution at the General Meeting;
B. receipt of valid tenders in respect of at least 2,707,611 Ordinary
Shares (including Ordinary Shares represented by ADSs) (representing
approximately one percent of the Issued Ordinary Share Capital of the Company
as at the Latest Practicable Date) by 1:00 p.m. on the Ordinary Share Closing
Date (unless the Tender Offer is extended);
C. Jefferies being satisfied, acting reasonably, that, at all times up
to immediately prior to the announcement of the results of the Tender Offer,
the Company has complied with its obligations, and is not in breach of any of
the representations and warranties given by it, under the Option Agreement;
D. the Company continuing to have sufficient profits available for
distribution to acquire, under the Option Agreement, the Ordinary Shares
purchased by Jefferies pursuant to the Tender Offer;
E. there not arising any material adverse change or certain other
force majeure events prior to the closing of the Tender Offer; and
F. certain other Tender Conditions as set out in paragraph 2.1 of Part
V of the Circular.
The Company has reserved the right at any time prior to the expiration of the
Tender Offer, with the prior consent of Jefferies, to extend the period during
which the Tender Offer is open and/or vary the aggregate value of the Tender
Offer, based on market conditions and/or other factors, subject to compliance
with applicable legal and regulatory requirements. Any such decision will be
announced by the Company through a Regulatory Information Service and by a
press release in the US.
The Company may terminate the Tender Offer if the Company concludes, in its
reasonable discretion, one or more of the Tender Conditions set out in
paragraph 2.1 of Part V of this Tender Offer have not been satisfied.
2.6 Results announcement
As set out in the expected timetable below, it is expected that the results of
the Tender Offer will be announced on 24 June 2024, subject to the
satisfaction of the Tender Conditions. Settlement is then expected to take
place as set out in the timetable.
2.7 Full terms and conditions of the Tender Offer
Full details of the Tender Offer, including the terms and conditions on which
it is made, are set out in Part V of the Circular. Some questions and answers
related to the Tender Offer are set out in Part IV of the Circular.
Further details of the Tender Offer in respect of the ADSs, including some
questions and answers relating to the tender of the Ordinary Shares
represented by ADSs and certain terms and conditions on which the Tender Offer
is made in respect of the ADSs, are set out in Part VIII of the Circular.
3. GENERAL MEETING TO APPROVE THE RESOLUTION
The Tender Offer requires the approval by Shareholders of the Resolution at
the General Meeting. For this purpose, the Company is convening the General
Meeting for 11:00 a.m. (New York City time) (4:00 p.m. (London time)) on 6
June 2024 to be held at 6 Tide Street, Boston, Massachusetts, 02210, United
States to consider and, if thought fit, pass the Resolution to authorise and
to approve the terms on which the Tender Offer will be effected. A notice
convening the General Meeting is set out at the end of the Circular.
The General Meeting has been convened to consider and, if thought fit, approve
a resolution authorising the Company to purchase up to a maximum of 33,500,000
Ordinary Shares, representing approximately 12 percent of the Issued Ordinary
Share Capital as at the Latest Practicable Date.
The Company will not purchase Ordinary Shares pursuant to the Tender Offer
unless the Resolution is duly passed.
A summary of action to be taken by Shareholders in
connection with the General Meeting is set out in paragraph 9
of Part III of the Circular, together with the notes to the Notice of General
Meeting as set out in Part X of the Circular.
4. TAX
Shareholders and ADS Holders should note that, due to the circumstances of its
formation and the application of Section 7874 of the United States Internal
Revenue Code of 1986, as amended ("Code"), the Company is treated as a US
domestic corporation for US federal income tax purposes. Accordingly, the
Company is subject to US federal income tax as if it were a US corporation,
and distributions made by the Company (including certain payments in respect
of the Tender Offer that are treated as distributions for US federal income
tax purposes) are generally treated as US-source dividends. As a result, both
US Holders and Non-US Holders may be subject to US federal income tax
withholding on receipt of cash proceeds from any tendered Ordinary Shares or
ADSs accepted in the Tender Offer and the Special Dividend (if any).
The attention of Shareholders is drawn to Part VI of the Circular, which
provides a summary of certain material UK tax and US federal income tax
consequences for Shareholders of accepting the Tender Offer or receipt of the
Special Dividend (if any). Part VI also provides additional information to
Shareholders on Section 302 Certifications, IRS Form W-9 and IRS Form W-8.
This information is not tax advice. Shareholders and ADS Holders should
consult their professional tax advisors, in particular regarding their
individual tax position and the exemptions or reductions of US withholding tax
that may be available to them.
5. OVERSEAS SHAREHOLDERS
The attention of Shareholders who are not resident in, or nationals or
citizens of, the United Kingdom is drawn to paragraph 5 of Part V of the
Circular.
6. BOARD INTENTIONS
The Company's Chief Executive Officer, Dr Bharatt Chowrira, has confirmed that
he does not intend to tender any of his current individual beneficial holding
of Ordinary Shares through the Tender Offer. The remainder of the Board,
comprising the Company's interim chair and the Company's non-executive
directors, are each considering their individual position and may tender
Ordinary Shares of which they are the registered or beneficial holder, or
otherwise hold on trust as trustees (as applicable), under the Tender Offer.
7. RECOMMENDATION BY THE BOARD
The Directors consider that the Tender Offer is in the best interests of the
Shareholders as a whole. Accordingly, the Board recommends that Shareholders
vote in favour of the Resolution, as the Directors intend to do for their
respective individual beneficial holdings of, in aggregate, 7,938,094 Ordinary
Shares, representing approximately 3 per cent. of the Issued Ordinary Share
Capital of the Company as at the Latest Practicable Date.
The Board makes no recommendation to Shareholders in relation to participation
in the Tender Offer itself. Whether or not Shareholders decide to tender all,
or any, of their Ordinary Shares (including Ordinary Shares represented by
ADSs) will depend on, among other things, their view of the Company's
prospects and their own individual circumstances, including their own
financial and tax position. Shareholders are required to take their own
decision and are recommended to consult with their duly authorised independent
financial or professional advisor.
Appendix I
Expected Timetable
Announcement of launch of the Tender Offer, publication of the Circular and 20 May 2024
the Notice of General Meeting
File Schedule TO with the SEC 20 May 2024
Tender Offer opens 20 May 2024
Latest time and date for receipt by the Depositary of voting instructions in 10:00 a.m. New York City time on 31 May 2024
respect of ADSs for the General Meeting
Latest time and date for receipt of Forms of Proxy for the 11:00 a.m. New York City time (4:00 p.m. London time)
General Meeting on 4 June 2024
General Meeting 11:00 a.m. New York City time (4:00 p.m. London time)
on 6 June 2024
Announcement of results of the General Meeting 6 June 2024
Latest time and date for receipt by Tender Agent of Letters of Transmittal for 5:00 p.m. New York City time
ADSs and book-entry transfer of ADSs on 18 June 2024
Latest time and date for receipt of Tender Forms and share certificates in 1:00 p.m. London time
relation to the Tender Offer on 20 June 2024
Latest time and date for receipt of TTE Instructions in relation to the Tender 1:00 p.m. London time
Offer on 20 June 2024
Announcement of results of the Tender Offer 24 June 2024
Purchase of Ordinary Shares under the Tender Offer 24 June 2024
CREST accounts credited with Tender Offer proceeds in respect of by 25 June 2024
uncertificated Ordinary Shares
CREST accounts credited for revised, uncertificated holdings of Ordinary by 25 June 2024
Shares (or, in the case of unsuccessful tenders, for entire holdings of
Ordinary Shares)
Cheques despatched in respect of Tender Offer proceeds for Certificated by 3 July 2024
Ordinary Shares
Credit of proceeds in respect of book-entry ADSs by 3 July 2024
Despatch of balance of ADSs by 3 July 2024
Cheques despatched in respect of Tender Offer proceeds for Certificated ADSs by 3 July 2024
Return of share certificates in respect of unsuccessful tenders of by 3 July 2024
Certificated Ordinary Shares
Despatch of balancing share certificates (in respect of Certificated Ordinary by 3 July 2024
Shares) for revised, certificated holdings in the case of partially successful
tenders
Notes:
The dates and times set forth above are in accordance with English law and
practice and are subject to the Company's right or, upon certain conditions
set forth in the US securities laws, the Company's obligation to extend or
amend the Tender Offer.
References to times in this timetable are to London time (British Summer Time
(BST)) or New York City time (Eastern Daylight Time (EDT)) (as stated).
Definitions
The following definitions apply throughout this announcement, unless stated
otherwise:
Act the Companies Act 2006 of England and Wales, as amended from time to time
ADR American Depositary Receipt representing ADSs
ADS American Depositary Share, each representing 10 Ordinary Shares
ADS Closing Date 5:00 p.m. New York City time on Tuesday 18 June 2024, unless the Tender Offer
is extended
ADS Holders the holder(s) of ADSs from time to time
ADS Tender Price an amount of £25.00 (twenty five pounds sterling), being ten times the Tender
Price, with such amounts to be converted by the Tender Agent from pounds
sterling into US dollars and paid to the ADS Holder in US dollars
BMS Bristol Myers Squibb, Inc.
Board the Company's board of directors as at the date of this announcement
Certificated Form or Certificated a share, title to which is recorded in the relevant register of the share
concerned as being held in certificated form (that is, not in CREST)
Circular the document mailed on the date of this announcement to the Shareholders and
ADS Holders with details of the Tender Offer
Code the United States Internal Revenue Code of 1986, as amended
Company PureTech Health plc, a public limited company incorporated in England with
registered number 09582467 and registered office C/O Tmf Group, 13th Floor,
One Angel Court, London, EC2R 7HJ, United Kingdom
Company's Registrar's Helpline +44 (0)370 707 4040, the helpline available to Shareholders in connection with
the Tender Offer in respect of Ordinary Shares and operated by Computershare
Investor Services PLC, in its capacity as, the Company's Registrar and
Receiving Agent
Company's Registrar Computershare Investor Services PLC
CREST the paperless settlement procedure operated by Euroclear enabling system
securities to be evidenced otherwise than by certificates and transferred
otherwise than by written instrument
Depositary Citibank, N.A., located at 388 Greenwich Street, New York, New York, 10013,
United States
Directors the directors of the Company on the date of this announcement (or, where the
context requires, the directors of the Company from time to time)
Euroclear Euroclear UK & International Limited, the operator of CREST
Exchange Act United States Securities Exchange Act of 1934, as amended
FCA the Financial Conduct Authority of the United Kingdom
FSMA the Financial Services and Markets Act 2000, as amended from time to time
General Meeting the general meeting of the Company to be held at 6 Tide Street, Boston,
Massachusetts, 02210, United States, at 11:00 a.m. (New York City time) (4:00
p.m. (London time) on 6 June 2024, or any adjournment thereof, notice of which
is set out in the Circular
Information Agent Georgeson LLC of 1290 avenue of the Americas, 9th floor, New York, NY 10104,
United States
Issued Ordinary Share Capital the Company's issued ordinary share capital, excluding any treasury shares
from time to time
Jefferies Jefferies International Limited
Karuna Karuna Therapeutics, Inc.
Latest Practicable Date 16 May 2024, being the latest practicable date prior to this announcement
Letter of Transmittal the Letter of Transmittal issued with the Circular to registered ADS Holders
in connection with the Tender Offer
Listing Rules the listing rules made under Part VI of FSMA (and contained in the FCA's
publication of the same name), as amended from time to time
London Stock Exchange London Stock Exchange plc
Non-US Holder has the meaning given to it in paragraph 1.5 of section B of Part VI of the
Circular
Notice of General Meeting the notice of the General Meeting which appears in Part X of the Circular
Option Agreement the option agreement dated 20 May 2024, between Jefferies and the Company
Ordinary Share Closing Date 1:00 p.m. London time on Thursday 20 June 2024 in respect of Ordinary Shares,
unless the Tender Offer is extended
Ordinary Shares the ordinary shares of one pence each in the capital of the Company
Overseas Shareholders a Shareholder who is a resident in, or a national or citizen of, a
jurisdiction outside the United Kingdom
Prospectus Regulation Rules the prospectus regulation rules made under Part VI of FSMA (and contained in
the FCA's publication of the same name), as amended from time to time
Receiving Agent Computershare Investor Services PLC, at The Pavilions Bridgwater Road,
Bristol, BS99 6AH, United Kingdom
Register the Company's register of members
Regulatory Information Service a service approved by the FCA for the distribution to the public of regulatory
announcements and included within the list maintained on the FCA's website
Resolution the special resolution to be proposed at the General Meeting, as set out in
the Notice of General Meeting
SEC the United States Securities and Exchange Commission
Section 302 Certification means the Section 302 Certification of Treatment of Tender Payment made
available to holders of Ordinary Shares and ADS
Shareholders the holders of the Ordinary Shares or ADSs, as applicable, from time to time
Special Dividend a special dividend that may be returned following completion of the Tender
Offer if the full $100 million is not returned through the Tender Offer and
the Board determines there is sufficient surplus to return such, without
interest, less any applicable withholding taxes and subject to market and
industry conditions at the time and any relevant legal restrictions
Takeover Code the City Code on Takeovers and Mergers
Tender Agent Citibank, N.A., located at 388 Greenwich Street, New York, New York, 10013,
United States
Tender Conditions the conditions of the Tender Offer as set out in Part V and Part VIII of the
Circular
Tender Form the form enclosed with the Circular for use by Ordinary Shareholders who hold
Ordinary Shares in Certificated form in connection with the Tender Offer
Tender Offer the invitation to Shareholders to tender Ordinary Shares (including Ordinary
Shares represented by ADSs) on the terms and conditions set out in the
Circular (and, where the context so requires, the associated repurchase of
such Ordinary Shares by the Company from Jefferies)
Tender Price 250 pence being the price per Ordinary Share (equivalent to £25.00 per ADS)
Transaction the acquisition by BMS of the Company's stocks in Karuna for a total equity
value of approximately $14 billion
Uncertificated Form or Uncertificated a share recorded on the Register as being held in uncertificated form in CREST
and title to which, by virtue of the Uncertified Securities Regulations, may
be transferred by means of CREST
United Kingdom or UK the United Kingdom of Great Britain and Northern Ireland, its territories and
dependencies
United States, US or USA the United States of America, its territories and possessions, any state of
the United States and the District of Columbia
US dollar or USD or US$ or $ the lawful currency of the United States
US Holders has the meaning given to it in paragraph 1.4 of section B of Part VI of the
Circular
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