Bayer Nordic’s subsidiary Aviator Acquisition has started the voluntary cash offer to acquire all the shares of Norwegian oncology firm Algeta for Nkr362 per share.
The total value of the transaction is about Nkr17.6bn (€2.1bn), and the enterprise value amounts to Nkr16.2bn (€1.9bn).
A Nordic country group in the international Bayer Group, Bayer Nordic established Aviator Acquisition for the sole purpose of the acquisition of Algeta.
Algeta’s board of directors has unanimously decided to recommend that its shareholders accept the offer, which expires on 24 February.
According to Algeta, the offer period may be extended, at any time and on one or several times, provided that the maximum offer period does not exceed ten weeks.
Bayer intends to close the deal in the first quarter of 2014, it has already obtained pre-acceptances for about 14% of the shares in Algeta, including pre-acceptances from all members of Algeta’s board of directors, certain senior managers, as well as from Algeta’s largest shareholder, HealthCap IV.
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The completion of the offer is subject to satisfaction or waiver of customary conditions, including a minimum acceptance level of 90% of the share capital.
Bayer said that the German Federal Cartel Office’s clearance of the acquisition of Algeta was announced on 6 January 2014 and no further antitrust approvals are required.
Both the firms have collaborated since 2009 to develop and commercialise radium-223 dichloride, which was approved in the US in May 2013 under the trade name Xofigo and is being co-promoted there by Algeta and Bayer.
The European Commission had granted marketing authorisation in November 2013 to Xofigo, an alpha-particle-emitting radioactive therapeutic agent for the treatment of patients with castration-resistant prostate cancer (CRPC), symptomatic bone metastases and no known visceral metastatic disease.