Bain and Cinven's Stada take-private bid fails

Shareholders representing 65.2% of Stada shares accepted the offer, meaning the offer narrowly missed the minimum acceptance condition. Tendered shares will be returned to shareholders.

Bain and Cinven gained the approval of the management and supervisory boards, which recommended a bid of €66 per share in April. Had it been accepted, the takeover would have represented the largest private-equity-backed takeover in Germany ever, giving the business a total enterprise value of €5.3bn.

When the acceptance period was extended, a press release explained that the action was largely due to a lower than expected level of tender participation by Stada's large retail and index funds shareholder base, which were unable to tender their shares during the tender period. However Stada was hesitant to accept this as the primary reason. A spokesperson from the firm said: "It is too early to speculate on the reasons that the bid failed. It is something that we will need to analyse but we don't think there is one simple explanation."

The company will now continue with the growth plan it agreed prior to the acquisition process. It expects adjusted revenues of €2.28–2.35bn in 2017, with adjusted EBITDA of €430–450m and adjusted net income of €195–205m, according to a statement.

Stada reports no further takeover plans at present: "The board has a duty to consider all and any bids but there is nothing currently in the pipeline," a spokesperson told unquote".

Bain declined to comment on the matter and Cinven could not be reached.

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