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.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.