Myovant Sciences rejects $2.5 bln takeover bid from Sumitovant, Sumitomo Pharma

Myovant Sciences Ltd said on Sunday it rejected a $2.5 billion takeover offer from Sumitovant Biopharma and its parent group Sumitomo Pharma Co Ltd as the bid "significantly undervalues" the U.S. drugmaker.

Sumitovant, which currently holds approximately 52% of the outstanding shares in Myovant Sciences, and Sumitomo Pharma had submitted a proposal to acquire the remaining shares in the drugmaker for $22.75 per share in cash, according to a statement.

The special committee has carefully reviewed the proposal and determined that it significantly undervalues the company and is not in the best interests of the company or its minority shareholders, Myovant Sciences said, adding it remains open to considering any improved proposal that reflects the "full and fair value" of the firm.

The proposed acquisition consideration represents an equity value of $2.4 billion and an enterprise value of $2.5 billion, Sumitovant Biopharma said in a separate statement.