Merck KGaA to Acquire Silence Therapeutics in Takeover Deal
SLN has more than doubled off its 52-week low of $4.19.
Summary
Merck KGaA, Darmstadt, Germany has agreed to acquire Silence Therapeutics outright in an all-cash transaction for $20 per ADS that values the company at about $1.3 billion, a 130% premium to Silence's closing ADS price on Oct 16. That puts a definitive takeover on the table for a company whose shares last traded at $9.10 with a market value of roughly $540 million. The deal lands after a strong run of news: divesiran hit its Phase 2 SANRECO primary endpoint in polycythemia vera in August, the company raised an upsized $175 million offering at $13.50 per ADS, and controlling holder Richard Griffiths cut his stake from 21.7% to 7.97%. Silence's board recommends the deal, holders of about 14% of voting power have signed voting and support agreements, and a $13 million termination fee applies in specified circumstances. With the offer clearing the $13.50 offering price, the question now is how large holders respond.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Silence Therapeutics' board recommends the deal; holders of ~14% of voting power signed voting and support agreements, and a $13 million termination fee applies in specified circumstances.
At the time of this announcement, SLN was trading at $9.10 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $539.5M. The 52-week trading range was $4.19 to $17.58. This news item was assessed with positive market sentiment and an importance score of 10 out of 10. Source: Dow Jones Newswires.