Eurobio Scientific’s board endorsed a €26.55-a-share buyout proposal from majority owner EB Development, setting up a potential purchase of the remaining 9.86% and a delisting if regulators approve.
On Oct. 27, the board issued a unanimous favorable opinion and recommended that shareholders tender their shares. The company filed a draft response note with France’s Autorité des marchés financiers (AMF), which is reviewing the note and the offer.
EB Development owns 90.14% of Eurobio Scientific. Its offer covers 992,846 shares, representing 9.86% of the company’s capital and voting rights, and is set to run for 10 trading days.
EB Development raised its offer from €25.30 to €26.55 per share on Oct. 26. The board said the revised price was 30.1% above the Sept. 16 closing price, the last trading day before the offer was announced. Independent expert Ledouble found the price financially fair to shareholders who tender into the modified offer.
If the AMF approves the transaction, EB Development would pay €26.55 for shares not tendered during the offer. The remaining shares would then be subject to a compulsory buyout, followed by their removal from Euronext Growth Paris.
The filing said several board members or their representatives had links to EB Development. They committed to follow the recommendation of a committee made up mostly of independent directors to address potential conflicts. The committee said Eurobio shares had “very limited” liquidity. The filing also said Ledouble reviewed comments from minority shareholders and included responses in its report.
