Mubadala and Novo Holdings invest 250 million euros in Evotec

Mubadala Investment Company, Abu Dhabi’s strategic investment arm, and Novo Holdings, are investing 250 million euros ($295 million) in German drug discovery and development firm Evotec (EVT: Xetra), whose shares were up 2.3% at 23.06 euros by mid-morning.

In this private capital increase, Mubadala will invest 200 million euros to subscribe 9,182,652 Evotec shares at a share price of 21.7802 euros per share representing around 5.6% of outstanding shares. Evotec gains with Mubadala a new long-term strategic oriented shareholder with extensive experience and expertise in the biotech industry. Evotec's existing long-term shareholder Novo Holdings will invest 50 million euros to subscribe 2,295,663 shares of Evotec at a same share price to reinforce its ownership at about 11.0%, to secure financial flexibility for the company.

The placement was made at 2.5% discount to the five-day volume weighted average price (VWAP) of 22.3387 euros prior to the Xetra closing auction on October 12, 2020. After the registration of the capital increase in the commercial register, the share capital of the company will increase to 163,375,808 euros or 163,375,808 ordinary bearer shares.