BASF Bids $657 Million for Norway's Pronova BioPharma
On Wednesday, Norwegian natural lipid therapies manufacturer Pronova BioPharma announced receipt of a "voluntary cash offer" from German chemical company BASF.
"The intended acquisition will significantly strengthen our position in the fast growing and highly profitable market for omega-3 fatty acids," said BASF in a press release.
The offer of 12.5 Norwegian kroner ($2.18) per share works out to about $657.3 million for Pronova's shares. With the addition of the company's net debt, the total value of the deal is $846 million.
Shares of Pronova quickly rose on the news, as investors anticipated a rival bid for the company. However, Pronova's Board of Directors has already unanimously recommended that its shareholders accept BASF's bid. Moreover, shareholders controlling 60% of the company's voting shares have "irrevocably pre-accepted the offer," Pronova said in a statement.
Ninety percent of shareholders must approve the buyout in order for it to proceed. Still, assuming the deal does go through, BASF intends to integrate Pronova into its Nutrition & Health division. Pronova's marquee product is the omega-3 heart medicine Lovaza, which GlaxoSmithKline (NYS: GSK) markets for the company.
The article BASF Bids $657 Million for Norway's Pronova BioPharma originally appeared on Fool.com.Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of GlaxoSmithKline. Motley Fool newsletter services recommend GlaxoSmithKline. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.