Stada Arz boards recommend renewed bid by Bain Capital and Cinven

The executive and the supervisory boards of German generic drugs maker Stada Arzneimittel (SAZ: Xetra) today published their reasoned joint statement on the renewed voluntary public takeover offer by Nidda Healthcare Holding, the acquiring company of Bain Capital and Cinven, for all outstanding shares in Stada.

Both boards conducted a thorough and detailed review of the offer document of July 19, 2017 and have reached the conclusion that the renewed takeover offer is in the best interest of the company and all of its stakeholders. For this reason, the two boards in their statement have recommended that shareholders accept the renewed offer.

In their statement, both boards point to the financial attractiveness of the renewed takeover offer, with a financial consideration of 66.25 euros per share – consisting of 65.53 euros offer price plus a dividend of 0.72 euros – the total offer price is 0.25 euros higher than in the initial offer. It also offers shareholders an attractive premium of 49.5% on the last uninfluenced price of the Stada share. It was also possible to increase transaction security as compared to the initial offer. The minimum acceptance threshold has been reduced to 63% and is thus below the acceptance rate of the initial offer. Furthermore, the bidder already has binding tender commitments from various investors in the amount of about 20% of outstanding Stada shares.