Health and Healthcare

Are Aimmune Shareholders Getting Enough in the Buyout?

Chris Lange

Published: August 31, 2020 1:45 pm

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.

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.

24/7 Wall St.
10 Jefferies High-Conviction Stock Ideas for the Rest of 2020