Karo Pharma will launch voluntary cash offer to acquire the entire issued share capital of Weifa for € 3.78 per share in cash.
The offer values the total share capital of Weifa at approximately € 138 million on a fully diluted basis and the Board of Directors of Weifa has decided to recommend that its shareholders accept the offer.
Anders Lönner, Chairman of the Board of Karo Pharma said: “The acquisition of Weifa is based on strong commercial grounds.. The two companies are highly complementary in terms of both product portfolio and geography and we therefore see important synergies. We strengthen our Nordic operations and take a leading position in the Norwegian market. Our joint product portfolio with several new launches in the next year is more likely to succeed. A strong and profitable home market provides better opportunities for taking the next step towards new markets and co-operations outside the Nordic region. We are following our plan and looking forward to a very interesting future for our shareholders”.
Einar J. Greve, Chairman of the Board of Directors of Weifa said: “The proposed combination of Weifa and Karo Pharma will create a leading Nordic player. The synergies are evident and will contribute to further develop Weifa’s position as a leading supplier of OTC products in Norway. The Board of Directors of Weifa has undertaken a careful review of the terms and conditions of the Offer and believes the Offer recognizes the strategic value of Weifa and delivers an attractive cash premium to our shareholders”.
The offer price represents a 10% premium to Weifa’s closing share price on 23 August 2017 and a 25% and 37% premium to the three-month and twelve-month volume weighted average stock price on 23 August 2017, the last trading day prior to the announcement of the offer, respectively.