Can Mayne Pharma’s Cosette Deal Clear FIRB and Financing Hurdles in Time?

FIRB Approval Extension Adds Pressure

Mayne Pharma Group Limited has disclosed a critical update regarding the regulatory and financing status of its proposed acquisition by Cosette Pharmaceuticals. The Foreign Investment Review Board (FIRB) has extended its statutory deadline for approving the scheme of arrangement to 20 November 2025, a move that adds a layer of uncertainty to the transaction timeline. FIRB approval is a mandatory condition for the scheme to proceed, and this extension compresses the window for subsequent steps.

Financing Contingent on Tight Deadlines

Cosette’s ability to fund the acquisition hinges on its debt arrangements, which are only available if the scheme becomes effective by 24 November 2025. Mayne Pharma revealed that Cosette only recently engaged with its lenders to explore extending these debt commitments. One lender has responded, indicating that a renewed due diligence and approval process will be necessary, potentially taking several weeks and offering no guarantees. This introduces a significant risk that the financing might not be secured in time, potentially delaying or jeopardizing the deal.

Court Hearing and Scheme Timetable

The second court hearing to approve the scheme has been rescheduled to 21 November 2025, still allowing a narrow timeframe for the scheme to become effective by the new end date of 24 November. Mayne Pharma emphasized that the scheme and Cosette’s payment obligations are not conditional on the current debt facilities, suggesting that alternative financing or fallback options may exist. However, the company also affirmed its commitment to enforcing its rights under the scheme implementation deed, signaling vigilance over the transaction’s progress.

Market Implications and Next Steps

With Mayne Pharma shares set to be suspended from trading on the effective date, investors are closely watching the unfolding regulatory and financing developments. The company has pledged to keep the market informed as the FIRB decision and court processes advance. The tight timelines and financing uncertainties underscore the delicate balance between regulatory approval and funding arrangements in complex cross-border acquisitions.

As the clock ticks down, the coming days will be pivotal in determining whether the acquisition can proceed smoothly or if further delays and complications will arise.