Canada-based contract development and manufacturing (CDMO) services firm Patheon has already said that the offer “substantially undervalues” the firm, based on an analysis commissioned from independent financial advisors BMO Capital Markets and Goldman Sachs that valued the firm in the $4.20 to $5.00 per share range.
The $2 offer is set to expire on April 16, unless it is extended or withdrawn by JLL Patheon, part of the larger JLL Partners group, which has steadily amassed a 40 per cent stake in Patheon over the past few months. In January it was holding around 29 per cent of Patheon’s issued and outstanding restricted voting shares.
Patheon has accused the private equity group of opportunistically taking advantage of recent volatility in its share price.
The contract manufacturer is in the throes of a major restructuring exercise - put in place a year ago when CEO Wes Wheeler took the helm - that has resulted in a top-to-bottom revamp of the business and a hefty cut in first-quarter losses.
As part of that drive Patheon has relocated its corporate headquarters from Toronto to Research Triangle Park in North Carolina, US, sold off, refocused and downsized a number of facilities and signed a series of deals to broaden its portfolio of services.
“JLL believes that the offer represents a liquidity event at an attractive premium for holders of thinly-traded securities,” said the private equity firm in a statement.
“Moreover, the offer consideration is composed entirely of cash,” it stressed.