Nichi-Iko said that the deal will provide it with a platform to commercialize its biosimilar drugs in the USA market, while giving Sagent access to its “sophisticated manufacturing infrastructure and industry-leading quality control systems”.
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Nichi-Iko will pay $21.75 for each share of Schaumburg, Illinois-based Sagent, a premium a tad over 40% to the share close price on Friday, July 8 of $15.50, Sagent said in a release on Monday.
“The U.S. market is a top priority for Nichi-Iko and we believe Sagent is an ideal partner to accelerate our global growth strategy”, Yuchi Tamura, CEO for Nichi-Iko said in a statement.
To view the full article, register now. The transaction, which has been unanimously approved by both companies’ Boards, is expected to close in the second quarter of fiscal 2017 (2QFY17).
The deal would give Sagent access to Nichi-Iko’s manufacturing infrastructure and quality control systems.
No changes to Sagent’s current operations are now anticipated and Nichi-Iko expects that Sagent’s current management team will continue to lead Sagent from its headquarters in Schaumburg, Illinois.
The tender offer will begin in 15 business days after the deal is signed and remain open for at least 20 business days.
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The merger agreement contemplates an all cash tender offer for $21.75 per share, followed by a second-step merger for stock not tendered in the Offer. Sagent has 32.84 million shares outstanding, according to FactSet. The stock hasn’t closed as high as that price since August 6, 2015.
