Last news analysis

EQT IX announces a public offer
to the shareholders of Recipharm AB

By The Editor - 14 december 2020

On December 14, 2020, EQT IX, through Roar BidCo AB, announced a public offering of SEK 220 in cash per share to the shareholders of Recipharm AB and SEK 1,427,010 per Recipharm convertible bond with a par value of 1 000,000 SEK. Roar BidCo has secured ownership of approximately 25.7 per cent of the shares and 74.3 per cent of the votes in Recipharm through Lars Backsell, the chairman of the board of Recipharm, and Thomas Eldered, the CEO and a member of the board of Recipharm, who are indirect shareholders of Recipharm and are participating with EQT IX in the Offer.

The price per class B share in the Offer represents a premium of: 24.4 per cent compared to the volume-weighted average trading price of SEK 176.87 on 11 December 2020 (the last day of trading prior to this announcement); 21.5 per cent compared to the highest closing share price recorded since the Company's listing in 2014 of SEK 181.00

The total value of the Offer, based on the 75,009,01310 shares in Recipharm not directly or indirectlycontrolled by Roar BidCo or its closely related parties, and all outstanding Convertible Bonds, amounts to approximately SEK 17,929 million. The Offer values Recipharm, based on all outstanding 100,950,423 shares and all outstanding Convertible Bonds to approximately SEK 23,636 million (2,315 millions of euros).

Over the first 9 months of the year, Recipharm achieved a turnover of SEK 8,256 million (5,476 in 2019), an increase of 51% including 4% organic growth and 47% external growth following the takeover of Consort medical. EBITA increased by 66% and amounted to SEK 927 million (558) corresponding to an EBITA margin of 11.2% (10.2). The turnover from October 2019 to September 2020 amounts to SEK 10,237 or more than 1,002 million euros. EBITDA for the first 9 months of 2020 is 16.3%. The Offer values Recipharm represents a multiple of 14.44 of EBITDA over the period from October 2019 to September 2020.

EQT was founded in 1994 together with Investor AB, the leading owner of Nordic-based international companies and founded by the Wallenberg family more than a hundred years ago. Today, EQT is a leading investment organisation with offices in 16 countries around the world, from Asia to North America. Since its inception, EQT has raised approximately EUR 75 billion in commitments and has numerous investment strategies.

Lars Backsell, the chairman of the board of directors of Recipharm, and Thomas Eldered, member of the board of directors and the CEO of Recipharm, said: "In EQT we have found a partner who shares our values as entrepreneurs and our vision for Recipharm. EQT has also an impressive track record of sustainable value creation and growth. We are convinced that EQT's experience in developing companies will allow us to build an even stronger company faster in an industry in rapid change. We have chosen our partner carefully and are now committed to EQT. We are convinced they are best placed to provide the necessary support and to lead Recipharm during the next phase in developing the Company. We will not accept any competing offers and will not participate in any other consortium; we want to do this together with EQT."

Recipharm announced on November 24 a letter of intent with Moderna, a U.S. based biotech company, to formulate, fill and finish mRNA-1273, Moderna's COVID-19 vaccine candidate. The activity will be performed in Recipharm's drug product manufacturing facility located in Monts, France.

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