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

Takeda's Shire takeover to bring $963 million fee bonanza
FILE PHOTO: Shire branding is seen outside their offices in Dublin, Ireland, April 25, 2018. REUTERS/Clodagh Kilcoyne/File Photo -
Clodagh Kilcoyne(Reuters)
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By Ben Martin

LONDON (Reuters) - Banks, law firms and other advisers stand to earn up to $963 million (£749.3 million) in fees from Takeda Pharmaceutical's <4502.T> $62 billion (48.3 billion pounds) takeover of drugmaker Shire <SHP.L>, 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 <EVR.N>, JP Morgan <JPM.N> and Nomura while Shire’s line-up includes Citigroup <C.N>, Goldman Sachs <GS.N> and Morgan Stanley <MS.N>.

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)

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