LONDON (ICIS)--Germany-based chemicals producer Bayer said on Monday that it has commenced its Norwegian kroner 17.6bn (€2.1bn) takeover offer for Norway-headquartered pharmaceutical company Algeta.
Oncology specialist Algeta’s board of directors have voted unanimously that shareholders accept the NKr362/share offer, following the signing of a transaction agreement between Bayer and Algeta’s management on 19 December last year.
Bayer has already acquired 14% of outstanding Algeta shares through Aviator Acquisition, a special purpose vehicle established for the Algeta takeover, and stockholders have from 20 January to 24 February to tender their shares.
The shares tendered so far are from Algeta’s management and a fund managed by life science venture capital investor HealthCap, which is the company’s largest shareholder. Completion of the deal is contingent on 90% of Algeta’s share capital being offered up, and has already received approval from German competition authorities. No further competition approvals are needed for the acquisition to go through, Bayer added.
The two companies have collaborated since 2009 on Xofigo, an alpha particle-emitting radioactive therapeutic agent for the treatment of prostate cancer, which was granted a marketing authorisation by the European Commission in November 2013.
(€1 = NKr8.35)