Ailing UK pharmaceutical services firm Clinigen is said to be in talks with private equity firm Triton Investment Management over a £ 1billion takeover proposal.
Following the announcement of the “indicative non-binding proposal” shares of the company climbed nearly 25% in the London market, hitting 786.41p and then closing at 741.30p.
“Clinigen’s board of directors is in advanced talks with Triton regarding the proposal,” the company said according to The Times.
According to the newspaper, Clinigen advised its shareholders to keep their horses, saying the proposal could not end with an offer.
If successful, the offer could be a lifeline for Clinigen, which was forced to issue a profit warning in July due to the pandemic halting clinical trials and reduced demand for its key anti-cancer drug, Proleukin.
As pressure from its main investor Elliott Management intensifies, Clinigen may want to accept Triton’s offer, which must be made before 5 p.m. on December 30.
With a stake declining from 5% to 7.6%, Elliott Management reportedly continued to push Clinigen’s senior management to dissolve the company.