Receive free Abcam PLC updates
we will send you myFT Daily Digest Email summary of latest news Abcam There is news every morning.
Abcam has defended its handling of Danaher’s proposed $5.7 billion takeover, insisting the British life sciences company rejected an inadequate offer and urging the US group to raise its offer.
The Cambridge-based company’s chief executive, Alan Hirzel, dismissed accusations from co-founder Jonathan Milner that he planned to vote against the deal and wanted to oust the board and take over as chief executive executive officer.
“It was a robust process, a competitive process from start to finish, and the board recommended the highest offer,” Hetzel told the Financial Times.
Milner, who took a 6.1% stake in the company last month, believes the offer significantly undervalues Abcam and said Danaher’s forecast for Abcam’s performance was significantly below its own guidance. He accused the board of not giving enough consideration to other buyers.
But in a shareholder circular issued on Thursday, Abcam’s board said the $24 per share offer was the “highest” it had received after engaging with 30 potential counterparties, including 21 companies and 12 financial sponsors. , best price”. The company said the closest competing bid was $22.50, and Danaher had raised its offer twice from the original $20.50.
Hirzel told the Financial Times that he has led a transformation of the company that has seen its share price rise more than fivefold since taking over in 2014. He said Danaher not only provided the highest bid but also allowed Abcam to continue operating independently while partnering with other companies in areas such as diagnostics and bioprocessing.
He added that the valuations of Danaher and other bidders were based on forecasts published by the company and not lower than expected, as Milner suggested.
Founded in 1998, Abcam is a spin-off of the University of Cambridge and is committed to developing customized antibodies and other research products for scientists. Milner served as CEO until 2014, when he was replaced by Hetzel and remained on the board until 2020. He believes Abcam has been mismanaged since his departure and launched a campaign in May to overhaul the board.
The company said the $24 per share offer represents a 39% premium to the undisturbed share price on May 16, before Milner announced his intention to call an extraordinary general meeting, and a 48% premium to the volume-weighted average of the 30 months prior to May 16. The price on the trading day was $16.21.
Milner also questioned whether Abcam management was prioritizing its own bonuses over the best deal for shareholders. But the company said management compensation has not changed as a result of the deal. The company said discussions between Abcam and Danaher regarding existing management incentive plans took place after the purchase price and other terms were agreed upon.
Abcam abandoned its Aim listing last year in favor of a separate listing on Nasdaq. But Milner believes the company could also benefit from a UK listing, telling the Financial Times last month that he believed Abcam’s UK headquarters and jobs were at risk.
Danaher is committed to maintaining Abcam’s current geographic presence, including its UK headquarters, the company said Thursday.
Svlook
