By Adria Calatayud
U.K. private-equity firm Cinven Group has launched an acquisition offer for shares in German medical-diagnostics company Synlab it doesn’t already own, which values all of the target at 2.22 billion euros ($2.35 billion), the companies said Friday.
Synlab said its management supervisory board don’t consider the price of the offer to reflect the company’s long-term value, but see the proposal as a potentially attractive exit opportunity for short-term oriented or risk-averse investors.
The two companies signed an investment agreement backing Synlab’s long-term strategy, Cinven and Synlab said.
Cinven, which already holds 43.24% of the voting rights in Synlab through an entity called Ephios Luxembourg, is offering EUR10 a share. This represents a 23% premium to Synlab’s closing share price on Thursday and a 42% premium compared with its latest price before Cinven expressed its interest in March.
Synlab shareholders Novo Holdings and Ontario Teachers’ Pension Plan Board have showed support for the offer and committed to sell their shares, Cinven said.
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