Bavarian Nordic experiences a 21% price increase - rumors substantiated
Bavarian Nordic Faces Potential Takeover Offer, Stock Surges
In a significant turn of events, Danish pharmaceutical company Bavarian Nordic is currently in discussions with a consortium led by Nordic Capital and Permira regarding a potential takeover offer. The offer, if accepted, would value Bavarian Nordic at approximately $3 billion USD and could result in the company being delisted from the Nasdaq Copenhagen.
The consortium has proposed an all-cash offer of 233 Danish crowns per share, representing a 21% premium over Bavarian Nordic’s recent closing share price of 192.50 crowns on Nasdaq Copenhagen. The deal terms include customary conditions such as the consortium, via its company Innosera, needing to own or have valid acceptances exceeding 90% of Bavarian Nordic's voting rights and shares at the end of the offer period, receipt of regulatory approvals, no material adverse changes, and maintaining the board’s positive recommendation to shareholders.
The acquisition, expected to occur in Q4 2025, has already caused Bavarian Nordic’s shares to jump as much as 24% when talks first emerged, reflecting market optimism about the acquisition premium and buyout certainty. Given the recommended premium and the positive board endorsement, shares are likely to trade close to the offer price of 233 crowns while the deal progresses toward completion.
Bavarian Nordic has secured the first marketing approvals for its Chikungunya vaccine Vimkunya this year, as the virus continues to rise. The company has referred to its usual procedure for promptly informing the financial market and has declined to make further comments at this time.
Meanwhile, the stock symbol for Bavarian Nordic is WKN: 917165, and its stock has seen a significant jump on the Copenhagen Stock Exchange. Two vaccine stocks, including Bavarian Nordic, are already gaining significantly due to this news. However, the news comes amidst Abbott cutting its guidance, causing its stock to plunge.
As the negotiations continue, Bavarian Nordic shareholders stand to gain immediate value above recent market prices, subject to the usual regulatory and shareholder approval risks. The completion of the acquisition, if it occurs, would mark a significant event for Bavarian Nordic and its shareholders.
- The all-cash offer proposed by the consortium to Bavarian Nordic, if accepted, indicates a potential value of $3 billion USD, and this situation could lead to a delisting of the company from the Nasdaq Copenhagen.
- The acquisition premium and buyout certainty have resulted in a significant jump in Bavarian Nordic's shares, with shareholders potentially gaining immediate value above recent market prices while the deal progresses toward completion.
