Actavis is the target of a takeover bid by Novator, an investment group led by the Icelandic generics specialist’s chairman Bjorgolfur Thor Bjorgolfsson.
Novator wants to increase its holding in Actavis from 38.5% to 100%, allowing it to delist the company’s shares from Iceland’s OMX stock exchange.
The €0.98 per share non-binding takeover offer values Actavis at around €3.3 billion.
Novator said the offer represented a 9% premium over the closing price for Actavis’ shares on 9 May, and a premium of more than 21% over the six-month average closing price.
Actavis’ board of directors pledged to review the bid “as soon as feasible”.
Explaining its reasons for the bid, Novator pointed out that generic industry consolidation was continuously gaining pace, competition for leading positions in key markets was becoming ever more fierce, and pricing pressures continued to intensify.
“In such an environment, Novator views it as important for the successful future growth of the company that it is taken private,” the investment firm added. “In that way, [Actavis] is no longer restrained by the obligations and requirements which are placed on listed companies, including that of disclosure.”
Source: OTC Bulletin
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