All eyes are on Clinigen with investors to vote on a £1.2bn takeover

All eyes are on pharmaceutical company Clinigen with investors to vote on private equity shark Triton Investment Management’s £1.2bn takeover



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All eyes will be on AIM-listed pharmaceutical company Clinigen next Tuesday, as investors vote on the £1.2bn takeover by private equity shark Triton Investment Management.

The cash offer of 883 pence per share must be supported by at least 75 percent of voting shareholders. However, the offer has come under pressure from infamous activist Elliott Management.

The US hedge fund — Clinigen’s largest shareholder with a 10.5% stake — has urged Triton to increase its offer because the current deal undervalues ​​the group.

Other activist funds, Sparta Capital and Carlson Capital, are also said to be pushing for a higher offer, despite the offer receiving unanimous support from Clinigen’s board of directors. Triton’s move is also supported by shareholder advisory firms Institutional Shareholder Services (ISS) and Glass Lewis.

The offer was a 41 percent premium to Clinigen’s share price in early December, before the bidding period began.

However, as of Friday’s close, the shares traded at 905p, suggesting some investors believe a higher bid could be forthcoming.

The takeover vote follows a difficult period for Clinigen, who issued a shocking profit warning last June and also changed its chairman and chief financial officer. The misery is attributed to the pandemic.

Opponents of the deal are concerned that the acquisition will be made urgently before the company recovers from the effects of Covid-19.

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