Bain and Cinven nearing deal completion for Stada

Oscar Geen
25 August 2017

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Bain Capital and Cinven Partners have entered into negotiations with the remaining shareholders in listed German pharmaceutical company Stada in order to secure the squeeze-out threshold required to complete the protracted transaction.

The GPs have entered into domination and profit and loss pooling negotiations with Stada through their bidding company Nidda Healthcare.

Five members of Stada's supervisory board have resigned as a result of this action, stating their task is complete.

Bain and Cinven had their takeover offer accepted by more than 63% of shareholders last week, thereby meeting the minimum acceptance threshold for their takeover offer.

The remaining minority shareholders in Stada will receive an offer from the acquirers to purchase their shares against cash compensation and to pay compensation for the duration of the contract, according to a company statement.

Under German takeover law the bidder must acquire 95% of outstanding shares in most cases before it can exercise a squeeze-out option for the compulsory purchase of the remaining shares.