Tepnel recommends £93m offer from US suitor
NORTH West biotechnology group Tepnel Life Sciences today recommended a £92.8m takeover offer from American giant Gen-Probe.
The cash offer of 27.1p per share for the company came just eight days after Manchester based Tepnel – originally a university spin out – said it had received an approach.
San Diego-based Gen-Probe’s offer is a 162% premium to AIM-listed Tepnel’s average share price of 10.3p in the year leading up to the bid.
NASDAQ listed Gen-Probe is a global leader in the development, manufacture and marketing of rapid, accurate and cost-effective testing products used primarily for the clinical diagnosis of human diseases and for screening donated human blood.
Tepnel which floated in 2001, has two main divisions, one focused on molecular diagnostics and the other on research.
The molecular arm produces testing kits for genetic conditions like cystic fibrosis while pharmaceutical firms, such as AstraZeneca, outsource work to the research division.
Ben Matzilevich, chief executive of Tepnel, said: “We believe Gen-Probe’s offer represents significant value for shareholders and recognises both our past achievements and our future potential in molecular diagnostics and pharmaceutical services.
“In addition, we are excited about the opportunity to accelerate our strategic plans as part of one of the most established and highly respected molecular diagnostics companies in the world.”
Henry Nordhoff, chairman and chief executive of Gen-Probe, said: “We believe our acquisition of Tepnel will provide us immediate access to attractive growth opportunities in transplant diagnostics, genetic testing and pharmaceutical services, and accelerate our ongoing strategic efforts to strengthen our marketing and sales, distribution and manufacturing capabilities in Europe.
“We look forward to working with the employees and customers of Tepnel to broaden the use of their innovative technologies and expand on their many successes to date.”
Institutional shareholders with 36% of Tepnel’s shares and directors with 4% have agreed to back the offer. Gen-Probe needs 75% acceptance to clinch the deal.
