Stada takeover drags on as buyout firm bidders lower acceptance threshold

 
Lucy White
A picture taken on September 15, 2009, s
A disappointing take-up of the €5.3bn offer by existing shareholders has forced the consortium to cut the acceptance threshold (Source: Getty)

The takeover of pharmaceuticals manufacturer Stada has been prolonged, as the foremost bidders reduced their minimum acceptance threshold and extended their offer by two weeks.

Private equity firms Bain Capital and Cinven offered €66 per share for the business, which makes products such as Ladival sunscreen and Covonia cough medicine.

Valuing the German giant at €5.3bn, the offer was due to expire today.

However, a disappointing take-up of the offer by existing shareholders has forced the consortium to cut the acceptance threshold from 75 per cent to 67.5 per cent.

Under German law, this automatically extends the deadline by two weeks, a source close to the deal told City A.M.

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The buyout consortium was expecting challenges, the source said, since a large proportion of the shares were owned by retail investors who may forget to tender.

But even with the revised threshold, Bain Capital and Cinven still have a long way to go. Shareholder take-up of the offer stood at 21.5 per cent, as of midday yesterday, of which around 10 per cent were retail investors.

Stada opened its books to private equity suitors in February, attracting interest from Bain and Cinven's fellow buyout firms Advent International and Permira.

A bidding war began as both pairs were told to up their offers, before Bain and Cinven emerged triumphant in April when their offer was recommended by the company's management and supervisory boards.

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