BASF Bids $657 Million for Norway's Pronova BioPharma

On Wednesday, Norwegian natural lipid therapies manufacturer Pronova BioPharma announced receipt of a "voluntary cash offer" from German chemical company BASF.

"The intended acquisition will significantly strengthen our position in the fast growing and highly profitable market for omega-3 fatty acids," said BASF in a press release.

The offer of 12.5 Norwegian kroner ($2.18) per share works out to about $657.3 million for Pronova's shares. With the addition of the company's net debt, the total value of the deal is $846 million.

Shares of Pronova quickly rose on the news, as investors anticipated a rival bid for the company. However, Pronova's Board of Directors has already unanimously recommended that its shareholders accept BASF's bid. Moreover, shareholders controlling 60% of the company's voting shares have "irrevocably pre-accepted the offer," Pronova said in a statement.

Ninety percent of shareholders must approve the buyout in order for it to proceed. Still, assuming the deal does go through, BASF intends to integrate Pronova into its Nutrition & Health division. Pronova's marquee product  is the omega-3 heart medicine Lovaza, which GlaxoSmithKline (NYSE: GSK  ) markets for the company.


 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2123176, ~/Articles/ArticleHandler.aspx, 12/19/2014 5:45:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement