With the focus on pharmaceutical company Clinigen, investors will vote for a £ 1.2 billion acquisition by private equity shark Triton Investment Management.
Next Tuesday, investors will vote for a £ 1.2 billion acquisition of private-equity shark Triton Investment Management, which will draw attention to AIM-listed pharmaceutical company Klinigen.
A cash offer of 883p per share must win the support of at least 75% of voting shareholders. However, the bid is under pressure by infamous activist Elliott Management.
A US hedge fund, Klinigen’s largest shareholder with a 10.5% stake, is asking Triton to raise its offer because the current deal underestimates the group.
Other activist funds, Sparta Capital and Carlson Capital, are also believed to be aiming for higher offers, despite bids to secure unanimous support for the Klinigen Board of Directors. The Triton raid is also supported by shareholder advisory firms Institutional Shareholder Services (ISS) and Glass Lewis.
The bid was a 41% premium to Clinigen’s share price in early December, before the offer period began.
However, as of Friday’s closing price, stocks are trading at 905p, suggesting that some investors believe that higher offers may emerge.
The takeover vote has been a difficult time for Clinigen, who issued a shocking profit warning last June and also changed chairman and chief financial officer. The predicament is blamed on the pandemic.
Opponents of the deal are believed to be concerned that the acquisition will take place quickly before the company recovers from the effects of Covid-19.
Focus on Clinigen with investors and vote for £ 1.2 billion acquisition
Source link Focus on Clinigen with investors and vote for £ 1.2 billion acquisition