Pharmaceuticals firm Shield Therapeutics has recommended its shareholders reject a £46.1m offer for the company from an existing investor and lender.
The iron deficiency drugs specialist, which has its base in Gateshead, is subject to a cash offer from long-time shareholder and global operator AOP Health, which provided Shield with a $10m (£7.9m) convertible loan note facility in summer of 2022. Under that agreement, AOP secured the right to convert outstanding loan balances into shares in Shield.
Vienna-based AOP, which specialises in therapies for rare diseases and critical care, has requested a conversion which gives it about 41.9% of voting rights in Shield. UK company law dictates that AOP must make an offer for the firm, and in this case an offer of 6.2p in cash for each share is on the table.
