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URICH (Reuters) - The coronavirus pandemic has boosted Qiagen's prospects and a takeover by Thermo Fisher no longer makes sense unless the offer is increased substantially, one of the German genetic test maker's top ten shareholders told Reuters on Friday. Thermo Fisher agreed in early March to buy Qiagen for $11.5 billion (9.23 billion pounds) as the U.S.-based company looks to bolster its health diagnostic business.
Qiagen has seen high demand for products related to coronavirus testing and began shipping a rapid diagnostic test for COVID-19 to the United States at the end of March. It beat its targets with 9% net sales growth in the first quarter and forecasts growth of at least 12% for the second quarter.
"The world has changed massively since the offer was published on March 3," one of the ten largest shareholders in Qiagen told Reuters on condition of anonymity.
"The standalone outlook is much better than the current offer," the shareholder said, adding Qiagen was worth over 20% more than Thermo Fisher's offer of 39 euros per share.
Thermo Fisher was not immediately available to comment.
Qiagen shares were last up 0.7% at 38.31 euros, recovering from earlier losses.
Thermo Fisher called on Qiagen investors to tender their shares in May. The acceptance period for its offer runs until July 27.
Thermo Fisher has set itself the goal of achieving a minimum acceptance threshold of 75% for its offer.
Qiagen's management and board support the offer, but the shareholder said the boards should only stand by their approval if the offer is increased.
The shareholder also criticised Qiagen, saying the company had prematurely committed itself to negotiations with Thermo Fisher and had not followed up on enquiries from four other interested parties.
Qiagen declined to comment.
Interesting. Let's say NCYT £3, wonder how many would accept an offer of £3.60. I personally wouldn't as I'd be hoping for more than 9-10% profit, but I imagine those traders who bought big recently when it dipped to near £2 would bite their hand off, and I wouldn't blame them. Could they grab 51%?
Now tell me that T/O talks haven't been happening. Of course they have.....
Not based on Qiagen numbers which I think gggg previously highlighted is on something like 9-10 X turnover.
3.60 wouldn't be offered.
Okay, now I'm taking these takover musing much more seriously.
Also take note of the following : "Thermo Fisher called on Qiagen investors to tender their shares in May. The acceptance period for its offer runs until 27 July. Thermo Fisher has set itself the goal of achieving a minimum acceptance threshold of 75% for its offer."
-> If the deal fails at the end of the month, all bets are off.
Yes agree but sometimes (nearly always) a bigger parent will open more doors for you and will pay for those future earnings. We are already doing those kind of sales and/or building up to that and that may be enough for a suitor.
No one or we don't know yet but there is a demand it seems for string covid plays. If anyone it may be Astrazenica as we work closely with them. Nothing confirmed just talk yet by people. But good cause to.
*strong
If Qiagen demand more money and TF pull the plug they may look elsewhere...
The big boys will ALL have been looking at their options to meet growing market demand and secure future profits. That would obviously include acquisitions.
These discussions, as can be clearly seen from this, will have been ongoing for quite some time. NCYT will have been on everyone of their radars, especially now that it's starting to 'prove itself'. They are an absolute prime target for T/O and have almost been preening themselves for it - paying off debt, paying off mortgage, building distribution network, cash rich etc. It would be very naïve not to understand that a T/O of NCYT is a very real possibility.
If it were to happen, when would it be? Sooner the better for the buyer. Possibility to negotiate a relative bargain now, as opposed to full market value in 12-18 months.
How much? Difficult one, but I'd guess probably around a billion, right now.
These conversations will already be taking place.
Realistically we couldn't ask for nearly the same premium as Qiagen simply because we're playing in a different league (size-wise).
Also in terms of strategy, I think Thermofischer and other big boys were looking at Qiagen specifically, because they're after a good chunk of the diagnostics market share, and integrate their business easily. This may be easier than having to launch several T/O operations in a row with smaller players, and then try to streamline their collective business.
Now, if it turns out that a major T/O candidate is finicky and sounds greedy, the operation starts to lose its appeal... and smaller players start to appear on the radar.
Usain, it is interesting - and also one of the reasons I got into NCYT a couple of months ago. Even if it stands on it's own, it has HUGE potential. However, as a possible acquisition (and let's be honest, it's walking around with a target on it's back!), it's a potential goldmine. A couple of the big boys have worked with them close enough not to worry about conditional targets to be met, not if they sniff a bargain.
Would bet my lovely bottle of 25 year Talisker (precious) that NCYT have been in such discussions. If they haven't, they should have been. But, given the way they've paid off debt etc, I'd guess they have been happy participants and rolled out the welcome mat.
Just my opinion.
Hi Usain, agree with you, bar one point. I don't think it would depend upon what slice of the pie we win from the government tender. Any suitor would know enough about NCTY right now to make an early bid. They know that they'd get a bigger slice themselves with NCYT on board and integrated. They know they'd have an opportunity to grab a bargain before that tender process runs it's course. My guesstimate of a billion was 'as it stands today'.
The landscape is changing daily, but these will not be discussions that are starting tomorrow - they could well be discussions that conclude next week, or the week after. They will have started long ago....
https://corporate.qiagen.com/newsroom/press-releases/2020/20200630_agm
JUN 30 2020:
QIAGEN shareholders approve all agenda items related to acquisition by Thermo Fisher Scientific at Annual General Meeting
Venlo, the Netherlands, June 30, 2020 – QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) announced that its shareholders today approved all agenda items at the Company’s Annual General Meeting related to the proposed voluntary public takeover offer for the acquisition of all ordinary shares in QIAGEN by Quebec B.V., a wholly-owned subsidiary of Thermo Fisher Scientific Inc. (NYSE: TMO) for EUR 39 per share in cash (the “Offer”).
These agenda items included the Back-End Resolution allowing Thermo Fisher to execute certain post offer measures to acquire 100% of the shares in QIAGEN N.V. or the entirety of its assets and operations, which is one of the conditions of the recommended Offer. The shareholders further approved the conditional (re)appointment of seven Supervisory Directors, effective from the Offer settlement date, and conditional amendments to QIAGEN’s Articles of Association.
Excellent find B2, just goes to show that these acquisitions are a reality, right now.
So people, who do you think has been casting an eye over (and talking to) NCYT? I'd want to buy the best....
https://www.biospace.com/article/thermo-fisher-to-acquire-qiagen-for-11-5-billion/
Some background information.
looking at qiagen share price the 39 euros is about where they are at so how does that help the investors. are they expecting a rise after?
Havent looked at any qiagen charts or anything but im sure the SP would have been a fair bit lower before the offer and will always rise to just below the offer price as theres easy money to be made.
Not been in this position before personally but a scenario for us would be something like..
Rumours of an approach monday..sp rises to £5 or £6.
Rumours getting stronger..£7 to £8.
Offer made at..lets say £12 ps..
Sp rises to £ 10 or 11.
Investors still waiting to see if offer will be accepted/increased, whatever.
If looking like it will be accepted then sp would move closer to the offer price..lets say £11.80.
Figures are just an example but I think most would of us would be celebrating.
Drinks and a selection of fine anglo/french cheeses perhaps?
Jan 2019
Eli Lily $8Bn takeover of Loxo oncology
Loxo Q3 revenue - $42.47mil
Cash in bank - $136.11mil
June 2019
Pfizer $11.4Bn takeover of Array Biopharma
Array Q3 2018 revenue - $82.55mil
Cash in bank - $147mil
Jan 2019
Bristol-Myers Squibb $74Bn takeover of Celgene
Celgene Q4 2018 revenue - $4.36Bn
Cash in bank - $6Bn
Each of those figures are taken from a quarterly prior to the takeover. Have a think about that when the quarterly results are published at the end of July.
All academic at the moment of course but its something to think about.
I have no idea if these rumours have much substance or not but you also have to consider what the buying company think future revenue will be. The buying company may have better contacts and established agreements with countries around the world meaning that national testing programmes could include multiple countries and regions. Our current projected revenue could be x10 for a larger company
Yes and some of the larger pharmaceutical companies are weak or have very specialised diagnostic departments so a takeover will grow their diagnostic capability and they can scale up/ set up big operations around the world quickly.