TORONTO - Shares of Neighbourly Pharmacy declined sharply Today, down 8.6%, as investors reacted to news of a postponed takeover by the company's majority owner, PCP. The delay has contributed to a total loss of 28% in the company's share value for the year.
The original plan for PCP to acquire all remaining shares of Neighbourly Pharmacy at C$20.50 each has hit a snag, with the exclusivity period now extended to January 15, 2024. This adjustment allows PCP additional time to finalize equity financing arrangements necessary for the deal. Consequently, the anticipated completion date for the transaction has been pushed from the previously expected Q4 2023 to the end of March 2024.
Despite the setback, PCP has secured a fully underwritten credit facility amounting to C$650 million. The firm plans to allocate approximately C$450 million from this facility towards completing the acquisition of Neighbourly Pharmacy. This strategic move indicates PCP's commitment to finalizing the takeover, albeit on a new timeline that extends into the next year.
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