Roche shareholders overwhelmingly approved the $20.7 billion agreement to buy Novartis’ approximately one-third voting stock on Friday, according to the Swiss drugmaker.
Roche held an emergency general meeting to resolve issues relating to its plan to untangle the two Basel-based pharmaceutical companies that had been united for two decades by the investment.
The audited statutory interim financial statements of the firm as of October 31, 2021, were approved by a majority of 100.00 percent of shareholders, according to Roche.
With a majority of 99.85 percent, they also endorsed the idea to cancel the 53.3 million shares purchased.
As a result, the repurchase’s corporation law requirements have been met, according to Roche. The repurchase deal is expected to be completed in early December 2021.
“The Extraordinary General Meeting’s resolutions today are in Roche’s best economic and strategic interests,” said Roche Chairman Christoph Franz. “As a result, we will be in a better position to contribute to people’s health all around the world.”
Novartis agreed to sell 53.3 million Roche bearer shares for $388.99 (356.93 Swiss francs) per share earlier this month; a price that approximated the volume-weighted average of Roche non-voting equity certificates during the 20 trading days leading up to November 2.
The repurchase was subject to shareholder approval of a capital reduction through the cancellation of the repurchased shares, as well as the interim financial statements prepared for the transaction.
Novartis’ participation began in 2001, when Swiss activist investor Martin Ebner, well known for arranging the merger that gave birth to banking behemoth UBS, handed his Roche holding to its cross-town rival after being turned down by other bidders.
Roche Chairman Franz stated earlier this month that the agreement would provide his company more strategic flexibility since Roche would no longer need Novartis’ approval to develop plans.
