BASF increases takeover offer for Pronova BioPharma by 8%

Germany-based BASF (BAS: DE), the world’s largest chemical company, yesterday confirmed its previously-announced offer to acquire Norway’s Pronova BioPharma OSE: PRON.OL; The Pharma Letter November 22, 2013), but is increasing its cash offer price to 13.50 Norwegian kroner per share (previously 12.50 kroner). The offer period expires at 16:30 CET on January 18, 2013 and will not be extended.

The increased offer corresponds to a premium of 34% above the volume-weighted average share price for Pronova’s shares in the six months prior to announcement of the public takeover offer. Based on all outstanding shares and including all net financial liabilities, the enterprise value would be 4,996 million kroner (around $904.5 million or 684 million euros).

BASF expects closing of the offer in the first quarter of 2013. Pronova is best known for its product Lovaza (omega-3-acid ethyl esters), which sold by the UK’s GlaxoSmithKline in the USA and by US firm Abbott Laboratories (under the trade name Omacor) in Europe.