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I cannot see the Board agreeing a bid without knowing if
SNG001 has approval to treat COVID19......it would be madness!
This discussion will be all over facebook/twitter within the hour that a takeover is imminent and offer of £15 per sgare has been made.
If not then I will make it so ;)
BB is that view based on getting approval before the bid or not??
I’d suggest that taking Synairgen private is not the best, or fastest, way to get SNG001 to market.
Obviously the institutional investors carry some weight but again at the right price they will be happy - the BoD have a very powerful position, if they support a bid then the acquirer only need 50% plus of the vote whereas if the BoD do not support (therefore hostile) the acquirer requires 75%. A bid will come with BoD support my guess £1 - £1.5 billion likely but could be a little more. ATB
BB...it makes sense to me to go for a Buyout ..But I guess the big question is
are we seeking approval ourselves? We discussed this last weekend I said
we could put our own team together to do this, but many posters thought..no way..
and we would use a Partner with experience to do this ..But as many weeks have passed
and we have not announced any deal with a Partner surely that would support the theory
we are going alone.....If we get approval our value rockets....Then I think a buyout is a
realistic outcome...Because if we do a deal with X now that surely puts them in an
advantageous position..and chances of a future bidding war for a takeover are gone???
Exciting times ahead guys. Thanks for all the info. A lot of knowledge on this BB
The question is at what stage do Venrock announce their investment to the world? Clearly they believe that SNG001 is going to succeed, as they wouldn't be putting in this kind of capital otherwise. They will have an investment thesis based on research that we simply don't have access to, and this is driving them to buy millions of pounds worth of shares. I suspect they'll want at least 10%, but as others have pointed out, I can't see this happening without them causing a sharp increase in the share price as selling dries up... A fascinating period lies ahead.
Steady, that would very much depend on the ambtions of Lansdowne, Polar and Leonard Licht. Very little to do with us or senior company management.
*more
Steady - if they continue to buy on open market, there will be a point where sp goes batsh.t crazy.
So far sp has been static because old IIs are selling off, while the yanks are hoovering up.
The more they own, the mote upwards pressure there will be on sp.
They can always just make an offer to buy the entire thing though and we won't be going for anything near the current mcap.
Personally I believe a take over to be the most likely outcome and one that I would be very happy with - I realise that with a license agreement we may achieve more but that would require you to remain a shareholder for years to come - not a terrible proposition but I would prefer a good price now and to free up the funds for other opportunities. I also believe the SNG board are very up for a deal from big Pharma and at the right price I would not expect the takeover to be hostile but come with BoD support. For the moment hold hard.
Not sure how this works but if Vernock were to want to take us private , what price would they put on our business? The current market capitalisation value? Surely not? I am no expert in these matters.
That's how I read it yes.
I've seen it exercised once at ANGS (RNS - 10.01.2019)
So unless we see an rns for an EGM, there's nothing to worry about.
"If a potential suitor now owns 6% of the company it gives them an edge in negotiations."
Don't agree, but wanted others to be aware of section 303 of the Companies Act 2006:
If a shareholder holds > 5% of the companies shares, they have the right to require the Directors of the Company to convene a general meeting to propose various changes to the Board, as stipulated here:
https://www.legislation.gov.uk/ukpga/2006/46/section/303
I'm not saying anyone has plans for board representation, but all holders over 5% could call a meeting to do so by right.
I disagree it puts pressure on the board at these levels....it would need to be in he 20's
for that..and I do not think it is possible to build a position of that size here in the
near future ....IMHO!
Hostile takeovers are rare in the biotech world ....
That said , building a stake before news makes sense and does put a bit of pressure on the BOD , but we getting ahead of ourselves for the moment ....
I think the bid premium here is large and say a guess is 75 to 100% uplift at least.
If there is a bid going to come the bidder is mopping up whatever shares they can get at a minority listed price which is the current share price. Hence cheaper to get a minority stake. So when they go for a full takeover the price rises on all residual shares at a full control price and includes a bid premium. So enough said...looking fantastic IMHO.
Surely a better deal is in the best interests of Venrock even if they have a holding in the buyer/licencee?
If a major Pharma is accumulating here..that would most likely indicate
a buyout was their intention????
They will be asking for a place on the board shortly :-)
Ghia,
Have to agree with you ....and a US pharma is more than likely as already mentioned....
Pressure pressure
GHIA...I cannot see owning 6% would give a Pharma the edge in negotiations??
Surely we are going for the best deal on the table....!