Diurnal Group - Proposed acquisition by Neurocrine Biosciences

Diurnal has announced that it has agreed to an acquisition by Neurocrine Biosciences (US-based biopharmaceutical player) for a cash consideration of £48.3m or 27.5p per share. The proposed acquisition consideration is a c 144% premium to the closing price of 11.25p on 26 August. Although the acquisition is subject to shareholder approval by both companies, the transaction is likely to close by late October or early November. Neurocrine is also focused on the endocrine space (in addition to neurology) and anticipates synergies from the combination of the two businesses. It intends to continue pursuing Diurnal’s current R&D programmes in the UK and maintaining existing business operations. At the time of publication, Diurnal’s shares are trading c 130% higher than at close on the day before the announcement.