Vivalis and Intercell announce "merger of equals"

French biotech firm Vivalis (Euronext: VLS) has entered into an accord to acquire Intercell (ICEL.VI) in a deal valuing the Austrian vaccine maker at around 133 million euros ($174 million), and creating an enlarged entity in the European biotechnology sector under the name of Valneva, with stock market listings in Paris and Vienna.

Both companies are loss-making and the tie-up, billed as “a merger of equals,” will allow for cost savings of 5 million to 6 million euros a year, the companies said in a press statement. On completion of the merger, expected to complete in May 2013, Intercell shareholders will receive 13 new Vivalis ordinary shares and 13 new preferred shares for every 40 Intercell shares that they own.

The merger consideration represents a premium for Intercell shareholders of 38.5% on the basis of the last closing share prices and 31.7% on the basis of the average share prices over the last three months, as at 14 December 2012. Vivalis former shareholders will hold around 55.0% and Intercell former shareholders about 45.0% of the issued share capital of
Valneva.