Poolbeg shares slide as Hookipa terminates takeover talks

(Sharecast News) - Shares in Poolbeg Pharma were sliding on Friday, after Hookipa Pharma announced it had terminated discussions on a proposed all-share acquisition of Poolbeg, bringing an abrupt end to a deal that would have merged the two biotech companies.

Poolbeg confirmed it was informed of Hookipa's decision on 20 February, marking the conclusion of talks that began in early January.

The planned merger, first announced on 2 January, was intended to combine Poolbeg's rare disease focus with Hookipa's immunotherapeutics pipeline.

Under the initial proposal, Poolbeg shareholders would have held a majority 55% stake in the merged company, while Hookipa's shareholders would have controlled 45%.

The structure also included a $30m private placing organized by Hookiap to fund the combined entity.

As part of the deal, Poolbeg would have delisted from the London AIM market and become a subsidiary of the Nasdaq-listed Hookipa.

Hookipa did not provide a specific reason for withdrawing its offer on Friday, but confirmed it would not be making a firm bid under the UK Takeover Code.

The company reserved the right to revisit an offer under certain circumstances, such as a competing bid or a material change in Poolbeg's situation.

Neither company disclosed further details on the breakdown of negotiations.

"We were surprised and disappointed to hear of HOOKIPA's decision to withdraw from the combination discussions," said Poolbeg executive chairman Cathal Friel.

"Throughout this process, we have seen strong interest in the potential of POLB 001 and we continue to be focused on maximising the potential of our in-house programmes and exploring new opportunities to generate value for our shareholders."

At 1019 GMT, shares in Poolbeg Pharma were down 19.27% at 3.88p.

Reporting by Josh White for Sharecast.com.