Bain, Cinven raise Stada buyout offer again under activist pressure

Stada
Stada has met demands from activist investor Elliott Management.

Last week, an activist investor held out on the buyout offer for Stadaand it worked.

Monday, private equity partners Bain Capital and Cinven agreed to hand minority shareholders a souped-up 74.40 per share for the German generics company, thanks to pressure from Elliott Management. The activist holds a stake of about 13.3%, or 15.2% when factoring in stock options, Reuters reports.

RELATED: With its €5.3B buyout scuppered, Stada brings in new CEO, CFO

Bain and Cinven last month wooed the majority of Stada’s investors with an already sweetened 66.25-per-share offer, which totaled 5.24 billion ($6.23 billion). But shareholder support for that bid fell short of the 75% needed to access Stada’s cashflow and trigger a mandatory buyout offer to minority investors.

Now, if that 74.40-per-share offer wins the partners all remaining Stada shares, the deal total including debt would reach 5.42 billion, Reuters reports.

But while the pair of buyers may have met Elliott’s Thursday demands, they didn’t necessarily agree with them. They are “convinced that the fair value of Stada shares is below the price required by Elliott,” they said in a statement seen by the news service.

RELATED: Bain and Cinven select pharma veteran Albrecht as Stada's next CEO

Meanwhile, Bain and Cinven are gearing up to nominate their picks for Stada’s C-suite, they said Friday. They’re planning to tap drug industry veterans Claudio Albrecht for the CEO’s post and Mark Keatley for the CFO position, both of whom held those same positions at Actavis prior to its Watson buy. Albrecht and Keatley will take over for interim leaders Engelbert Coster Tjeenk Willink and Bernhard Düttmann, respectively.