Zogenix shares jump on UCB's $1.9B acquisition proposal

• UCB to commence a tender offer to acquire Zogenix (NASDAQ:ZGNX) for ~$1.9B/€1.7B, consisting of $26 in cash per share plus contingent value right for a potential cash payment of $2.00 per share upon EU approval by December 31, 2023, of FINTEPLA as an orphan medicine for treatment of Lennox-Gastaut syndrome (LGS).
• ZGNX shares jumped 60% in response to this news.
• The consideration represents a 72% premium to Zogenix shares based on the 30-day volume weighted average closing stock price.
• The board of directors of both companies have unanimously approved the transaction.
• If completed, the acquisition will contribute to UCB's revenue growth upon closing and will be accretive to its earnings in 2023.
• The transaction is expected to close by the end of 2Q22.
• There can be no assurance any payments will be made with respect to the CVR.

Comments

[pgallop]

Lucky timing, I sold a Covered Call at $28 strike that expiresJan 21/22.

[Adambombfx]

Not much of a profit for me but way better than a loss !

seekingalpha.com/...

[Sketlux]

@Adambombfx Well done! I, unfortunately, capitulated in December to harvest my tax loss. Should have sold early or have a longer breath...

[Adambombfx]

@Sketlux

Yes, ZGNX has been a rough ride !

[airkills]

The black box doesn’t seem to be that much of an issue except to hold down the price, at least the shorts got smoked or did they??? if they’re responsible for the share spike Tues morning and this leaked 24 hours early.

[airkills]

So the spike in share trading volume was what, a leak or was it management screwing over long time share holders.