In today’s briefing:
- M3 (2413 JP) Launches Partial Offer To Take Control of Elan (6099 JP)
- Elan Corporation (6099 JP): M3 (2413 JP)’s Partial Tender Offer
- BioAge Labs Launches IPO Roadshow, Seeks To Raise Up To $150M on the Nasdaq Exchange
M3 (2413 JP) Launches Partial Offer To Take Control of Elan (6099 JP)
- M3 Inc (2413 JP) will buy 50.1-55.0% of Elan Corp (6099 JP). Three principals+family have agreed to tender 50.1%. The premium is not huge. This is not an ATH.
- There will be synergies. I am a little surprised by the deal+price (CEO is young, why sell so cheaply so early?) but it should be good for the TargetCo.
- There are possible post-tender complications on a high participation rate. I expect those can be cured relatively easily.
Elan Corporation (6099 JP): M3 (2413 JP)’s Partial Tender Offer
- Elan Corp (6099 JP) announced a partial tender offer and capital and business agreement with M3 Inc (2413 JP). M3 aims to make Elan a consolidated subsidiary.
- The offer is for a minimum of 30.4 million (50.10% ownership ratio) and a maximum of 33.3 million shares (55.00% ownership ratio) at JPY1,040, 24.0% premium to the undisturbed price.
- Irrevocable from tendering shareholders will satisfy the minimum acceptance condition. The offer is unremarkable, suggesting a final proration materially above the minimum of 56.07%.
BioAge Labs Launches IPO Roadshow, Seeks To Raise Up To $150M on the Nasdaq Exchange
- BioAge Labs launches roadshow and sets terms for an IPO: a company offers 7.5M shares at the price range of $17.00-$19.00, implying a market cap of ~$580M at the midpoint.
- Sofinnova Venture Partners plans to purchase ~$15M worth of BioAge Labs shares in this offering. The shares are expected to begin trading on Nasdaq on September 26, 2024.
- I view IPO valuation (post-offering EV ~$280M and runway into 2028) as attractive and expect BioAge Labs shares will outperform during first trading day next week.
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