Bain, Cinven in increased bid for Stada

Amedeo Goria
11 July 2017

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Bain Capital Private Equity and Cinven Partners have filed a revised offer to acquire German pharmaceutical company Stada.

Following the recent failed takeover bid in June 2017, the GPs launched a new voluntary public takeover bid, offering €66.25 per share, a 25 cents increase compared to the previous offer launched in April 2017. The current offer is subject to a minimum acceptance threshold of 63% – below the 67.5% threshold of the previous offer – with an offer period of four weeks.

The new offer represent a premium of 49.5% over the company's share price prior to the first rumours about the potential takeover emerging in December 2016.

According to a statement, the management and supervisory boards of Stada support the new offer and the bidders have already received irrevocable commitments from several shareholders to accept their offer, equalling 19.6% of the company's share capital.

The previous offer failed to meet the acceptance threshold of 67.5%, with 65.2% of Stada shareholders accepting the offer, in June 2017. The takeover bid saw Bain and Cinven offer €66 per share in April, which would have represented the largest private-equity-backed takeover in Germany ever, giving the business a total enterprise value of €5.3bn.

More recently, the investor syndicate applied for an exemption from the one-year exclusion period enforced by the German Securities Acquisition and Takeover Act, with the aim to make a renewed public takeover offer. Concurrently, Stada CEO Matthias Wiedenfels resigned and was replaced by Engelbert Coster Tjeenk Willink.