Are Aimmune Shareholders Getting Enough in the Buyout?
The prize for Nestle in its acquisition of Aimmune Therapeutics is Palforzia, the world’s first treatment for a food allergy.
Aimmune Therapeutics Inc. (NASDAQ: AIMT) shares more than doubled to start out the week after reports surfaced that the company would be acquired by Nestle Health Sciences, a subsidiary of the Nestle.
The agreement was unanimously approved by all independent members of the Aimmune board of directors. The transaction is expected to close in the fourth quarter of this year.
Under the terms of the deal, Nestle will acquire Aimmune for $34.50 per share in an all-cash transaction, implying a fully-diluted equity value of $2.6 billion.
Aimmune agreed to file a recommendation statement containing the unanimous recommendation of the independent members of its board that Aimmune stockholders tender their shares to Nestle.
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The prize for Nestle here is Palforzia, the world’s first treatment for food allergy. Management considers this a game-changing proposition in the biopharmaceutical industry and a transformative treatment for the lives of millions of people living with potentially life-threatening peanut allergy.
Aimmune management also noted its appreciation for the continued strong collaboration with Nestle Health Science dating back to 2016 through the firm’s support as a shareholder and board member, as well as through their consumer/nutrition strength and experience.
All this considered, Aimmune is getting a solid premium for its shares. The transaction price reflects premiums of 125% and 62%, compared to the 50-day and 200-day moving averages of $15.33 and $21.26, respectively. However, keep in mind that this stock did top out around $37 at the start of this year, before the pandemic hit.
Aimmune stock traded up about 171% to $34.20 early Monday, in a 52-week range of $10.09 to $37.00. The consensus price target is $35.18.
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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.
