Vectura shares spurt 34% to 4-year high as it agrees on £958m Carlyle takeover

Summary

  • Vectura Group shares rallied very sharply on Wednesday, 26 May, hitting a 4-year high
  • The drugmaker has agreed on the terms of acquisition with Carlyle Group
  • Bidco will be acquiring all the share capital of Vectura for a cash consideration of £958m

Shares of Vectura Group Plc (LON: VEC), the Chippenham-headquartered drugmaker, rallied very sharply on Wednesday, 26 May, after the company agreed on the £958 million takeover by Carlyle Group Inc. The stock opened a little more than 31 per cent higher in the trade today, reacting to the early morning disclosure by the company.

With more than $260 billion worth of assets under management (AUM) as of 31 March 2021, Carlyle Group principally deploys the money on the behalf of its investors and the portfolio companies.

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According to the historical data available with the London Stock Exchange, the stock of Vectura registered at least a 4-year high on Wednesday. The stock was trading up 32.84 per cent higher at GBX 162.06. Earlier in the mid-morning session, the stock made a 4-year high of GBX 163.80, up 34.26 per cent from the previous close of GBX 122.

Vectura shares (26 May)

Image Source: REFINITIV

 

The stock of Vectura emerged as the biggest gainers among the 250-constituent mid-cap indicator FTSE 250. Also, it was one of the biggest positive points contributors to the market index.

Unusually high trading volumes were seen in the shares of Vectura with over 21.63 million shares exchanging hands up until 1517 BST, translating into a net traded turnover of more than £15.07 million.

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A glance at Vectura takeover

  1. Bidco, a freshly-instituted company indirectly controlled by Carlyle Europe Partners V Fund, will be entitled to acquire all the issued and to be issued ordinary shares of Vectura for a cash consideration of £958 million.
  2. The takeover offer of £958 million, reflects a premium of approximately 27 per cent from the closing price of GBX 122 apiece as on 25 May 2021. 
  3. Investors rushed to buy Vectura shares as the drugmaker packaged the deal for shareholders that they couldn’t resist.
  4. According to the initial agreements of the deals between Vectura and Bidco, the shareholders of Vectura Group will be entitled to receive a GBX 155 for each share held, including a GBX 136 in cash from Bidco and an interim dividend of GBX 19.
  5. JP Morgan Cazenove and Rothschild & Co duly advised the directors of Vectura Group with regard to the financial terms of the said acquisition.

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