Bain Capital and Cinven to make second attempt at Stada takeover?

The German pharmaceutical company Stada has reported that investment funds Bain Capital and Cinven might ask for a regulatory approval of the new bid for a takeover of the company, following last week's failure of the initial bid worth EUR 5.3 billion, Wisebroker reports.

The new bid would have to be approved by the German regulatory body, Bafin, but also the company itself, as the German laws do not allow re-bidding before the expiration of one year.

The Financial Times reported on Monday that Bain Capital and Cinven might submit a new bid within 48 hours. The investors might offer the same price of EUR 66 per share, but also lower the threshold to 65% or below.

The previous bid, which ended early last week, received a positive response from investors representing 65.5% of the shares, whereas the threshold had been set to 67.5%. The surprise over the failure of the bid was that much greater considering that the offered price carried a premium of 49% compared to the price of December 9, when the management's intention to find a strategic partner was first announced.

At the same time, Stada's leaders, the Chief Executive Officer and the Chief Financial Officer, resigned immediately following the information on a potential renewal of the bid. Stada's shares recovered the previous day by an additional 2.2% to EUR 63.9, Wisebroker reports.

STADA Grupa

Bain Capital Boston

Cinven Partners LLP

Hemofarm a.d. Vršac

Stada

Bain Capital

Cinven

Stada takeover

takeover of Stada

Stada shares