$5.6 billion offer beats the competition, pleases shareholders.
After months plying capital markets, German pharmaceutical company STADA Arzneimittel announced it will accept Bain Capital and Cinven’s $5.63 billion (€5.32 billion) offer to purchase the company in a deal involving a share price of €65.28 plus an expected dividend of €0.72 to be paid by STADA during the offer period.
The agreement comes in the wake of STADA’s efforts fielding a, multistage, transparent process to support potential bidders. According to Stada, the Bain Capital and Cinven bid presented the most financially appealing offer after the company received legally binding transaction offers from two consortia. The winning offer was subject only to the approval of STADA’s Executive Board.
“Over the past months, we have carried out a structured bidding process and achieved a significant improvement in the bids through joint, trustful negotiations with the bidding consortia,” said Dr. Matthias Wiedenfels, CEO of STADA Arzneimittel AG. Wiedenfels explained its bid process resulted in creating “approximately 750 million (euros) in additional value for our shareholders since the beginning of the process.” Subject to a careful review, the Executive Board and Supervisory Board of STADA is expected to recommend shareholders to accept the Bain Capital/Cinven offer. “With this combination,” said Wiedenfels, “we will create a foundation for tapping the great potential of STADA together with Bain Capital and Cinven and continuing to grow profitably.”