Bain and Cinven win support of a third of Stada's shareholders as takeover deadline creeps closer

Lucy White
Bain and Cinven need to reach a 63 percent threshold by Wednesday (Source: Getty)

The heavyweight private equity pairing of Bain Capital and Cinven will be hoping for a last minute surge in shareholder acceptance for their €4.1bn takeover over German pharmaceutical giant Stada, as they announced on Friday that they had won support from just 34.09 per cent of shareholders.

With the takeover deadline approaching on Wednesday, Bain and Cinven must reach a 63 per cent threshold to prevent their offer falling through.

The firms lowered this threshold from 67.5 per cent when it was first put to the vote in June. That offer collapsed when Bain and Cinven managed to scrape support from 65.52 per cent of shareholders.

Read more: Private equity players launch sweetened bid for German drugmaker Stada

Bain and Cinven managed to scrape support from 65.52 per cent of shareholders by the first offer deadline in June, and will be banking on a similar take-up this time.

Shareholder support has gradually been dripping in over the last few days, after the pair confirmed on the day they announced their latest offer that they had already received irrevocable commitments to accept from shareholders holding 19.6 per cent of Stada.

Both of the consortium’s approaches have been recommended by the drugmaker's board, after Bain and Cinven teamed up to win a bidding war with private equity rival Advent International earlier this year.

But all of the anticipation and rehashed offers have proved unpopular with labour union IG BCE, which threatened to resist any further takeover attempts if the current offer fails.

“This is some high-level gambling, and Stada's employees will have to foot the bill later,” said Ralf Erkens, district chief at the union.

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