Winners and Losers: Govt intervention sends Mayne spiralling
Shares in Mayne Pharma fell dramatically this week after the Federal Treasurer blocked a proposed takeover of the Salisbury-based pharmaceutical company.
After a takeover deal for South Australian pharmaceutical manufacturer Mayne Pharma was knocked on the head by the Australian Treasurer, shares in the company slid by more than 18 per cent.
The big-money bid was scuppered by Jim Chalmers in late November, after the Foreign Investment Review Board found the $672 million deal was not in the national interest.
It has also launched Mayne Pharma to the top of the Losers list for the week, with shareholders heading for the doors with their tails between their legs.
The former suitor – US-based Cosette – would be pleased, though, given it had been trying to exit the deal for most of the year after Mayne’s financial performance soured and its share price fell below $5.
Cosette had proposed to buy the company for $7.40 per share. Mayne is now worth just $3.71 per share.
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Other Losers included Chrysos Corporation, which saw shares slide 8.4 per cent after founding shareholder CSIRO reduced its ownership from 18 per cent to 9 per cent.
Chrysos managing director and CEO Dirk Treasure said: “CSIRO has played an important and formative role in our journey”.
“From the earliest stages of developing our PhotonAssay™ technology, its guidance and support have been invaluable, and we are grateful for the long-term commitment it continues to demonstrate,” Treasure said.
“We welcome the new investors to our register and thank those existing holders who have taken an opportunity to increase their interest in Chrysos.
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“With strong momentum and a well-defined strategy, Chrysos is well-placed for its next phase of growth and execution.”
Elixir Energy was the top Winner for the week, with shares rising 40.55 per cent on the back of an announcement that Omega Oil and Gas had acquired a 19.43 per cent equity interest in the SA business.
Elixir is a gas explorer that has a significant prospective asset in Queensland at the Bowen Basin.
Omega CEO and managing director Trevor Brown said the investment was “a further step toward achieving our goal to be the partner of choice in the Taroom Trough”.
“Omega is very favourably positioned with exposure to multiple opportunities across the Taroom Trough, Australia’s most prospective onshore gas and liquids province,” Brown said.
“Our interest in Elixir provides a low-cost entry into complementary acreage.”
The full list of Winners and Losers for the week ending November 28:
Data via Baker Young Limited analysts.
