£1bn takeover talks for pharmaceutical group
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Clinigen is in “advanced discussions” about a £1bn takeover of the pharmaceutical group by private equity firm Triton Investment Management.
Clinigen’s shares finished up 18% yesterday after the Burton-based business revealed it had received a “non-binding indicative proposal” from Triton.
Despite the jump in the share price, which closed at 741p, it is still some way below its year-high of 892p – before it issued a profit warning in the summer – or its levels in the weeks before the first lockdown when it traded close to 1000p.
However the current price still values the business at nearly £1bn.
Triton is a European mid-market investor which specialises in industrial tech, services, consumer and healthcare. It is required to either confirm a firm intention to make an offer, or announce that it won’t, by December 30.
In early September Sky News had reported that activist investor Elliott Management had held talks with Clinigen’s board and pushed for a break-up or sale of part of the business at the same time as its own stake in the group increased above 5%.
Take-private deals have been increasingly popular recently, with Morrisons, AA, St Modwen, LV among the UK companies to leave the stock market.