Are Allergan Shareholders Getting Enough in the AbbVie Acquisition?
Allergan has finally announced that its shareholders have voted to approve the company’s acquisition of AbbVie. The acquisition is expected to close in early 2020, but it is still subject to customary closing conditions and regulatory approvals.
Allergan PLC (NYSE: AGN) finally has announced that its shareholders have voted to approve the company’s acquisition by AbbVie Inc. (NYSE: ABBV | ABBV Price Prediction). The acquisition is expected to close in early 2020, but it is still subject to customary closing conditions and regulatory approvals.
AbbVie will acquire Allergan in a cash and stock transaction for a transaction equity value of roughly $63 billion, based on the closing price of AbbVie’s common stock of $78.45 on June 24, 2019.
Under the terms of the agreement, Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each Allergan share, for a total consideration of $188.24 per Allergan share.
The transaction price of $188.24 per share implies an upside of 15% from the 50-day moving average ($168.85) and 26.5% from the 200-day moving average ($148.69).
Brent Saunders, board chair and chief executive of Allergan, commented:
On behalf of Allergan’s Board of Directors and executive team, I would like to thank our shareholders for their overwhelming support of the proposed combination with AbbVie. In addition to delivering value for shareholders, this combination will create a leading biopharmaceutical company with a diversified portfolio and enhanced opportunity to invest in and deliver innovation for the patients we serve.
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Shares of Allergan traded relatively flat at $168.80 Monday morning, in a 52-week range of $114.27 to $192.69. The consensus price target is $183.40.
AbbVie traded at $73.50. It has a 52-week range of $62.66 to $94.98 and a consensus price target of $88.91.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
