Healthcare Business

Are Allergan Shareholders Getting Enough in the AbbVie Acquisition?

Allergan PLC (NYSE: AGN) finally has announced that its shareholders have voted to approve the company’s acquisition by AbbVie Inc. (NYSE: ABBV). 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.

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.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.