Atea Pharmaceuticals jumps on $5.75 a share takeover offer from Tang Capital
Parradee Kietsirikul
- Atea Pharmaceuticals (NASDAQ:AVIR) soared 24% in premarket trading after Tang Capital affiliate Concentra Biosciences offered to buy Atea for $5.75 a share in cash.
- The offer also includes a contingent value right representing the right to receive 80% of the net proceeds payable from any license or disposition of Atea’s program, according to a letter from Concentra in a Tang Capital 13D filing. The offer represents a 55% premium to Atea's (AVIR) closing price on Friday. Tang Capital has a 3.6% stake in Atea.
- The Concentra offer is subject to limited confirmatory due diligence and is based on the availability of at least $570 million of net cash and cash equivalents at closing. Concentra is prepared to complete due diligence and negotiate a definitive merger agreement by June 15, 2023 and would be able to close the acquisition by late July 2023.
- Atea (AVIR) reported Q1 results earlier this month.
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Comments (7)
Good deal for Tang but may also be good way for shareholders to exit. Time is the enemy of a bad business. Value drops with time
Based on a quick calculation on an envelope, Tang's offer is at a market cap of around $478 million.So, Mr. Tang is saying, "I give you $478 million today, you give me all of your stuff; and at the closing, hand me over $570 million in cash."This sounds like a scene in one of the Wild West movies. :-)
