Acquisition by Bavarian Nordic underway!
Bavarian Nordic is currently weighing a takeover offer from a consortium led by Nordic Capital and Permira, with the company's Board of Directors unanimously recommending that shareholders accept the offer of 233 Danish Kroner per share. This price represents a 21% premium compared to the closing price before the offer and a 37.4% premium over the six-month volume-weighted average share price.
The offer, which is voluntary and subject to acceptance by shareholders, is all-cash and considered an "attractive proposal" by the Board. The transaction is expected to complete in Q4 2025, with the consortium planning to keep existing operations and pursue compulsory acquisition of remaining shares after the offer.
However, some shareholders or the company might hesitate or consider counter-offers due to several reasons. These include concerns about the offer undervaluing the company's future growth potential or pipeline, a desire for a higher premium, strategic considerations about remaining public, potential competing bids, and concerns about the future ownership structure and operational changes following privatization.
The offer was confirmed last Thursday by news agency Bloomberg, valuing Bavarian Nordic at approximately 2.55 billion Euro. The stock of Bavarian Nordic jumped following the report, with shares briefly rising to 239 DKK post-offer announcement.
It's important to note that no public counter-offers have been reported, and discussions leading up to the offer were confirmed in late July 2025 without certainty of a deal until the announcement of the recommended offer and Board support.
Investors are advised not to act hastily regarding the takeover offer, and those who followed the AKTIONÄR's buy recommendation last week should not give up their position and remain invested with a stop-loss at the purchase price. The current share price of Bavarian Nordic is 238 Kroner, representing a 21% jump in share price.
Investors may need to improve their offer to secure more shares, and the consortium may need to address shareholders' concerns to ensure the successful completion of the takeover. The vaccine stock of Bavarian Nordic could potentially be a buy, given the cash windfall from the takeover offer, but the final decision depends on the offer price and the company's future prospects.
In conclusion, the takeover offer has been recommended but not yet fully accepted by all shareholders, and possible reasons against immediate acceptance mainly relate to valuation and strategic considerations. The acquisition is anticipated to close later in 2025, barring unexpected changes.
In light of the recommended takeover offer, the Board finds this proposal attractive due to its all-cash nature and the potential for a 21% premium per share compared to the prior closing price.
However, some shareholders might withhold their acceptance, considering factors such as future growth potential, strategic considerations about remaining public, or concerns about the future ownership structure and operational changes following privatization.
