Knight Therapeutics makes 'transformational' acquisition in Brazil

31 October 2019

Canada-based Knight Therapeutics (TSX: GUD) has entered into a definitive agreement to acquire a 51.21% interest in Brazil’s Biotoscana Investments, or Grupo Biotoscana (GBT), from a controlling shareholder group that includes Advent International and Essex Woodlands, among others, for 10.96 Brazilian reals per share.

Shares of Knight rose 5% in Toronto trading on the day of the announcement, while Biotoscana stock was up 5.4% at 10.26 reals in Sao Paulo.

This implies a 22.2% premium to GBT's 30-day volume weighted average share price as of October 18, 2019. Knight will pay around 596 million reals ($149 million) or C$189 million in cash consideration for the 51.21% controlling interest in GBT. Following completion of this transaction, Knight will launch a mandatory tender offer to acquire the remaining 48.79% interest in GBT from public shareholders on similar terms, for expected cash consideration of approximately 568 million reals or C$180 million, assuming all public shareholders tender their shares.

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