Takeda's Shire takeover to bring $963 million fee bonanza

By Ben Martin

LONDON (Reuters) - Banks, law firms and other advisers stand to earn up to $963 million in fees from Takeda Pharmaceutical's <4502.T> $62 billion takeover of drugmaker Shire (NYSE: SHP), according to documents for the deal published on Monday.

The deal will be the largest-ever overseas acquisition by a Japanese company and will lead to big payments to advisers working on both sides of the transaction.

The Japanese company expects spend about $733.4 million in fees and expenses in total, while London-listed Shire's costs will range between $216.5 million and $229.5 million, the companies disclosed in the documents.

Takeda’s team of advisers includes investment banks Evercore (NYSE: EVR), JP Morgan (NYSE: JPM) and Nomura while Shire’s line-up includes Citigroup (NYSE: C), Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS).

Takeda's single biggest expense will be its financing arrangements for the takeover which will cost it $386.6 million. That financing package includes a bridge loan of almost $31 billion from lenders including Sumitomo Mitsui Banking Corp and MUFG.

Takeda is also spending $111.7 million on financial and corporate broking advice and $44.2 million on lawyers, the documents show. Its other costs include $24.3 million for accounting advice and $6.3 million to public relations consultants.

Meanwhile, Shire estimates that it will pay banks as much as $150 million for their advice during the takeover, and up to $70 million to its lawyers.

Takeda still needs approval from European regulators and its investors for the deal to go ahead and said on Monday that it had scheduled a shareholder meeting for Dec. 5 for investors to vote on the takeover.

(Reporting by Ben Martin. Editing by Jane Merriman)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Inventurus Knowledge Solutions completes TruBridge acquisition at $26.25 a share
• Wall Street giants rule on staff trading on prediction markets, sources say
• USDA lowers beef export sales by 90% amid growing doubts over data