Sanofi-Aventis already owns 24.88% of the generic firm.
Sanofi-Aventis has increased its all-cash offer for Zentiva to €1.8 billion, or $2.63 billion. Zentiva’s board says that it approves this new price of 1,150 koruny, or $70.14 per share.
If the acquisition goes through, Zentiva would add a large portfolio of generic drugs including a version of Merck & Co.’s Zoloft. The firm will become a part of sanofi-aventis Europe, which already owns roughly 24.88% of Zentiva.
Sanofi-Aventis’ increased bid represents a 9.5% raise from the initial price of 1,050 koruny, which was made in June and rejected. The enhanced proposal is a 25.5% premium over Zentiva’s closing price on April 30, the last trading day before the intention to make an offer for Zentiva was reported.
Sanofi-Aventis Europe has received an irrevocable and unconditional undertaking from Jiri Michal, chairman and CEO of Zentiva, to tender his shares, representing approximately 3.4% of share capital and voting rights on an undiluted basis. Other members of Zentiva’s management have undertaken to tender their Zentiva shares representing an 2.3% of Zentiva’s share capital and voting rights on an undiluted basis.
If Zentiva withdraws its recommendation of the improved offer, a break fee of €25 million, or $36.59 million will apply.