Buyout Proposal for Bavarian Nordic Fails to Gain Support
A private equity consortium's attempt to acquire Bavarian Nordic did not receive sufficient backing from shareholders, ending months of negotiations.
Withdrawal of the Buyout Offer
Nordic Capital and Permira, operating through a newly created entity named Innosera, withdrew their offer after failing to secure the required shareholder approval. The consortium had recently increased their bid to 250 Danish Krone per share ($38.61).
Conditions and Outcome
The takeover required acceptance from at least 66.7% of shareholders by November. However, only 60% voted in favor, leading to the offer’s expiration. Bavarian Nordic confirmed the bid “irrevocably lapsed.”
Market Reaction
Following the announcement, Bavarian Nordic's share price dropped 20%, falling to $9.61 from $12.02.
Board Support and Shareholder Objections
In July, the board had unanimously endorsed the “attractive proposal” after intense discussions, noting the consortium’s “ample capital and resources” to support growth.
However, seeds of shareholder disagreement were quickly sown when Denmark’s biggest pension fund, ATP, objected to the transaction as “neither the timing nor the price of the presented offer reflects the opportunities we see in the company,” VP of ATP’s Danish equities, Claus Berner Moller, told Fierce Pharma in a statement at the time.
Summary
The buyout attempt by Nordic Capital and Permira failed due to insufficient shareholder backing and objections from major investors, leading to a significant drop in Bavarian Nordic's stock price.