Stock in biopharmaceutical firm Swedish Orphan Biovitrum (SOBI) rocketed after the firm revealed it was the subject of an SEK69.4bn ($8bn) acquisition offer, which it has urged shareholders to accept.
The offer, from Advent International Corporation and Aurora Investment, was made through Agnafit Bidco, and would represent a cash offer of SEK235 ($27) per share.
Offer on the table
Shares in drug producer SOBI rose sharply upon release of the offer, hitting SEK238, a 24% increase on Wednesday’s closing price.
The company has enjoyed six months of solid growth following a rather rocky previous year, during which the pandemic shook demand for its core business of treatments for autoimmune deficiencies, haemophilia, metabolic diseases and cancer support care.
The Agnafit Bidco offer represents a comparison premium of around 34.5% of the closing price on 25 August, or SEK174.70 ($20.3). The offer price is equivalent to 54.7% of the volume-weighted average trading price of SEK151.95 ($17.64) over 90 trading days up to 25 August, which was the last day of trading before the offer was made.
Key investors confirm interest
The two key investors have already agreed to accept the offer through Agnafit Bidco. Investor AB and Fjärde AP-Fonden have stakes in SOBI amounting to around 36% and 7% respectively. Upon completion, Agnafit Bidco will own more than 90% of SOBI stock.
Acceptance of the offer, which received the unanimous backing of the SOBI board, is expected to commence in the third week of September, and expires a month later, subject to any extensions.
Good deal for shareholders
In a statement, the Swedish pharmaceutical company said: “The board believes that the terms of the offer recognise SOBI’s long-term growth prospects, as well as the risks associated with those prospects, and provides certainty, in cash, to the SOBI shareholders.
“The board has further considered the opinion rendered by Danske Bank, according to which the offer is fair to SOBI’s shareholders from a financial point of view.”