Stada, a German manufacturer of generic copies of drugs, has received a 3.6 billion euros formal takeover offer from the private equity group Cinven along with another offer from a bidder which Stada didn’t name.
Cinven is offering a price of 56 euros per Stada share.
The company said it is still weighing its options and says it is “not possible to foresee whether a takeover offer from Cinven or the other potential bidder will materialize.”
Stada is seeking to expand its non-prescription consumer care business, as Its generic drug business is under price pressure as medical insurers in Germany, its largest market, are seeking bulk procurement deals at low prices.
However it is likely that once sold Stada will be breakup the two business: a real challenge as Stada is largely managed in divisions which combine generics and consumer care lines of business.
Stada shares jumped 13.7 percent to 56.5 euros on the day the news came out, on course to close at a record high.
Source: Financial Times