Private investment firm EQT has increased its offer for Sweden-based Karo Pharma to Skr6.15bn ($694m), partly due to an improved stock market performance since its initial bid more than two months ago.
The revised bid has been made through the EQT VIII fund.
The fund now offers Skr38 per share to Karo, which is a 29% increase on the closing price of shares on Nasdaq Stockholm on 26 October 2018, which was the last trading day before the first offer of Skr36.90 was made on 29 October 2018.
The board of directors of Karo Pharma has recommended that the company’s shareholders accept the increased offer. The initial offer was also recommended by Karo Pharma’s board.
EQT partner and EQT VIII investment adviser Per Franzen said: “We remain positive to the company and what EQT VIII can add as a new owner, which is why we have chosen to go to this level.
“We now hope that the remaining shareholders share our perspective that this revised offer is attractive, also considering the stock market development since the initial offer was announced end of October 2018.”
Karo Pharma’s chairman Anders Lonner and board member Per-Anders Johansson hold a 13.6% stake in the company. They previously declared their intention to accept the offer, but Lonner unexpectedly passed away in December 2018, as reported by Reuters.
The acceptance period for shareholders is expected to be until 17 January. EQT is required to assume ownership of 90% of the shares.
EQT has around €50bn in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US, with combined sales of more than €19bn and 110,000 employees.
Founded in 1987, Karo Pharma is a speciality pharma company that manufactures products sold to pharmacies and healthcare providers.