Redx shares surge on possible cash offer from Yesod

Drug discovery and development company Redx Pharma has received a further private approach from Yesod Bio-Sciences, it announced on Friday, that could lead to a possible cash offer for the entire issued and to be issued share capital of the company, at a price of 15p per share.

The AIM-traded firm said its board was giving “careful consideration” to the private approach including discussions with Moulton Goodies - its largest shareholder - and bearing in mind the commitments made in relation to funding from entities controlled by Redmile Group, as it detailed on 28 February.

Its directors said they understood that the proposed offer would be effected by way of a scheme of arrangement, with it being conditional only on the unanimous recommendation of the board of directors of Redx, and the receipt of an irrevocable undertaking from Moulton Goodies to vote in favour of the offer.

“The board acknowledges that Yesod reserves the right to waive these preconditions to making the proposed offer, or an alternative offer and understands that even in the event that these preconditions are met or waived, there can be no certainty that any firm offer will be made,” Redx said in its statement.

“Yesod has expressly reserved the right to reduce the offer consideration by the amount of any dividend or other distribution or return of capital which is paid or becomes payable by Redx after the date of this announcement.”

The Redx board said it would make further announcements in due course.

At 1025 GMT, shares in Redx Pharma were up 164% at 13.2p.