Stada's boards recommend shareholders accept Bain, Cinven's improved takeover offer

Stada Arzneimittel's executive board and supervisory board recommended that shareholders accept an improved takeover offer from private equity firms Bain Capital and Cinven, the drugmaker said Tuesday. The new proposal, which stands at 66.25 euros ($77.19) per share, comes after a previous offer from Bain Capital and Cinven valued at 66 euros per share ($77.17) failed to secure enough backing from Stada's shareholders.

"With the increased offer price, we have achieved an attractive premium for our shareholders," commented Ferdinand Oetker, chairman of Stada's executive board. The drugmaker said that both boards "reached the conclusion that the renewed takeover offer is in the best interest of the company and all of its stakeholders."

The executive board and supervisory board reviewed the new deal terms, which consists of a 65.53 euros ($76.39) offer price plus a dividend of 0.72 euros ($0.84), noting that it represents an "attractive premium" of 49.5 percent on the last uninfluenced price of Stada's shares. The company added that the minimum acceptance threshold has also been reduced to 63 percent, below the acceptance rate of the initial offer, which was backed by 65.52 percent of investors.