Shire and Baxalta to merge in $32 billion transaction

Shire plc,and Baxalta Incorporated announced that the boards of directors of both companies have reached an agreement under which Shire will combine with Baxalta. Under the agreement, Baxalta shareholders will receive $18.00 in cash and 0.1482 Shire ADS per Baxalta share. Based on Shire�s closing ADS price on January 8, 2016, this implies a total current value of $45.57 per Baxalta share, representing an aggregate consideration of approximately $32 billion. The exchange ratio is based on Shire�s 30-day trading day volume weighted average ADS price of $199.03 as of January 8, 2016, which implies a total value of $47.50 per Baxalta share. The value of the offer, as of Shire�s January 8, 2016 closing ADS price, represents a premium of approximately 37.5% to Baxalta�s unaffected share price on August 3, 2015, the day prior to the public announcement of Shire�s initial offer for Baxalta. This will provide Baxalta shareholders with approximately 34% ownership in the combined company. The parties expect the transaction to close mid-2016.