By Adriano Marchese
Neighbourly Pharmacy shares soared in early trading Tuesday after the company said it signed a preliminary agreement with Canadian private equity firm Persistence Capital Partners to be bought out at a 69% premium over Monday’s closing price.
At 9:41 a.m. ET, shares were trading nearly 57% higher at 19.02 Canadian dollars ($13.91).
The Canadian network of community pharmacies signed a letter of intent with an affiliate of Persistence Capital to be bought out by one of its newly formed entities at a price of C$20.50.
The stock has been in decline for most of 2023, falling about 48% in the year to close Monday at C$12.12 a share.
Persistence Capital currently owns about 50.2% of Neighbourly’s issued and outstanding common shares, and through its new entity would purchase the remainder.
The offered price is 47% premium to Neighbourly’s 20-day volume weighted average price per share of C$13.96, but lower than the 52-week high of C$25.50 it reached late last year.
Write to Adriano Marchese at [email protected]
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