This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Philip Morris International Inc. (PMI) Update On Its Medicago Inc. Holding

Philip Morris International Inc. (NYSE / Euronext Paris: PM) announced today that Philip Morris Investments B.V. (PM Investments), an affiliate of PMI, entered into a Funding and Cooperation Agreement with Mitsubishi Tanabe Pharma Corporation (MTPC), a Japanese pharmaceutical company, to privatize Medicago Inc. (Medicago). If the proposed privatization is completed, the Canadian biopharmaceutical company will be de-listed from the Toronto Stock Exchange.

Under this agreement, both PM Investments and MTPC agreed to:

(i) cooperate with respect to the privatization of Medicago;

(ii) provide, on a pro rata basis, funds to effect the proposed privatization;

(iii) certain governance arrangements if the proposed privatization is completed; and

(iv) not pursue an acquisition of Medicago, other than pursuant to the Funding and Cooperation Agreement, during the term of the Funding and Cooperation Agreement.

The Funding and Cooperation agreement is terminable on the earliest of the closing of the proposed privatization, by mutual agreement in writing of both PM Investments and MTPC but at the latest on April 12, 2014. MTPC concurrently entered today into a separate agreement with Medicago providing for the proposed privatization.

PM Investments currently holds 98,608,800 common shares representing 38.5% of all of the issued and outstanding common shares of Medicago, when calculated on a non-fully diluted basis.

MTPC advised PM Investments that it is the beneficial owner of 15,385,000 common shares of Medicago, which represents 6.0% of all of the issued and outstanding common shares of Medicago, when calculated on a non-fully diluted basis.

After the privatization, Medicago will be owned 40% by PM Investments and 60% by MTPC.

Each common share of Medicago entitles the holder thereof to one vote. Accordingly, in the aggregate, PM Investments and MTPC beneficially own 113,993,800 common shares of Medicago, representing 44.5% of the votes attaching to the issued common shares of Medicago in the aggregate.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs