Bain and Cinven bid to acquire German drugmaker fails

Shares of German generic and OTC drugmaker Stada Arzneimittel were down 8.1% at 58.15 euros in after-hours trading on the Frankfurt exchange yesterday, after it became clear that the proposed 5.3 billion euros ($5.9 billion), or 66 euros per share, acquisition of the company had failed to gain sufficient shareholder backing to proceed.

Nidda Healthcare Holding, the acquiring company of Bain Capital and Cinven, announced on Monday that, as of expiry of the extended acceptance period at midnight (24:00 CEST) on June 22, 2017, only 65.52% of the Stada  shares outstanding have been tendered under the voluntary public takeover offer. Consequently, the minimum acceptance threshold, which the bidder reduced from the original 75% to 67.5% on June 7, 2017, has not been reached.

Bain and Cinven fought off bids from another private consortium comprised of Advent International and Permira. However, following the failed deal, it is seen as unlikely that Advent or Permira would bid again because their offer was below the one that had just collapsed. Also, Shanghai Pharmaceutical in May confirmed its interest in a takeover of Stada, but cautioned at the time that it had not submitted an official offer.