![Neighbourly Pharmacy Extends Exclusivity Period for Takeover](https://www.forexbrokersreview.org/img/e9911c20-6993-4005-9faf-48b5ca3ddba4/news-article-14.jpeg?fm=jpg&q=80&fit=max&crop=1920%2C1080%2C0%2C0&w=810)
Neighbourly Pharmacy has announced their decision to extend the exclusivity period granted to Persistence Capital Partners (PCP) in order to allow their majority shareholder more time to finalize equity financing arrangements for a takeover. The Canadian pharmacy-chain operator has pushed back the exclusivity date from November 13th to January 15th. It is expected that the deal with PCP will close by the end of March, pending certain conditions, including PCP securing fully committed equity financing.
A Promising Deal in the Making
In early November, Neighbourly Pharmacy entered into a letter of intent with PCP for a deal that would involve a newly formed entity controlled by PCP acquiring all the outstanding shares of the pharmacy company for 20.50 Canadian dollars ($14.85) each in cash. Currently, PCP already owns slightly more than 50% of Neighbourly's issued and outstanding common shares.
Financing the Transaction
Neighbourly Pharmacy announced on Monday that they have received commitments for a fully underwritten credit facility of C$650 million. This credit facility is co-led by Bank of Nova Scotia and RBC Capital Markets. It is anticipated that PCP will utilize approximately C$450 million from this credit facility to finance the proposed transaction.
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