German Drugmaker Stada Shareholders Back Takeover

German drugmaker Stada shareholders back takeover

Germany's Stada, a leading generic drugs producer, on Friday said its shareholders had approved a sweetened takeover bid by two private equity groups which values the company at more than five billion euros

FRANKFURT AM MAIN, , (APP - UrduPoint / Pakistan Point News - 18th Aug, 2017 ) - Germany's Stada, a leading generic drugs producer, on Friday said its shareholders had approved a sweetened takeover bid by two private equity groups which values the company at more than five billion euros.

Stada Arzneimittel said in a statement that Bain Capital and Cinven had met the threshold of winning the backing of 63 percent of shareholders for their latest offer, sealing a months-long effort to acquire the drugmaker.

"We are pleased that the question of the future ownership structure has now been settled," said Stada chief executive Engelbert Coster Tjeenk Willink. "With the extensive industry expertise of the new owners and their access to a worldwide network in the healthcare sector, Stada's position as a globally active pharmaceutical company will be sustainably strengthened," he added.

Shareholders accepted the equity partners' latest offer of 66.25 Euros ($77.70) per share after rejecting a 66 euros per share bid in June. The deal values Stada at 5.3 billion euros and marks one of the largest buyouts yet of a German firm by a private equity group, according to news agency DPA.

News of the shareholders' greenlight sent shares in Stada soaring 12.51 percent to 72.12 euros by 1310 GMT. Based in Bad Vilbel near Frankfurt, Stada employs some 10,000 people worldwide and reported revenues of 2.17 billion euros last year. Its main focus is on generic drugs, but Stada also produces the popular cold medicine Grippostad and Ladival sun creams.