Recordati Board Supports €10.7bn CVC, GBL Acquisition Despite Dissent
Recordati Board Decision on CVC and GBL Acquisition Offer
Board Vote and Offer Details
July 15 (Reuters) - Recordati said on Wednesday that a majority of its board has deemed as "fair" an offer by private equity firm CVC Capital Partners and Belgian investment group Groupe Bruxelles Lambert to take the Italian drugmaker private.
Six out of the board's 10 members voted in favour of the €51.29 ($58.80) per share offer, while four independent directors deemed it to be inadequate and not fair, the company said in a statement.
Recordati's shares closed at €51.3 on Wednesday and were up about 5.7% so far this year.
Overview of the €10.7 Billion Cash Offer
The €10.7 billion cash offer for Recordati was made in May amid a wave of consolidation in Italy's pharmaceutical sector.
Strategic Considerations and Board Rationale
The board said it took into account the potential benefits of operating as a privately held company, including greater flexibility to pursue "long-term strategic initiatives" and acquisition opportunities.
Dissenting Directors' Perspective
The four independent directors who dissented said the offer did not adequately reflect Recordati's value and future prospects, although they acknowledged the strategic rationale of the deal and the potential benefits associated with a delisting.
Background and Company Profile
CVC's Stake and Previous Interest
CVC, which has since 2018 controlled a vehicle holding a 46.8% stake in Recordati, had in March submitted a non-binding expression of interest for all of the company’s shares, with the aim of delisting it.
History and Operations
Company Origins
Founded a century ago by Giovanni Recordati as a family pharmacy in a town in central Italy, Recordati now operates businesses covering primary care, consumer health and rare diseases.
Financial Information
($1 = 0.8723 euros)
Reporting Credits
(Reporting by Anusha Shah in Bengaluru; Editing by Chris Reese and Jonathan Ananda)
