All Blue Capital in $773 mln bid for Zymeworks

Author of the article: Investment firm All Blue Capital has approached Zymeworks Inc, a developer of antibody therapies for cancer, with a $773 million acquisition offer. In a regulatory filing late on Thursday, All Blue said it had made a non-binding offer for $10.50 per share in cash, which represents a 116% premium to Wednesday’s…
All Blue Capital in $773 mln bid for Zymeworks

Author of the article:

Investment firm All Blue Capital has approached Zymeworks Inc, a developer of antibody therapies for cancer, with a $773 million acquisition offer.

In a regulatory filing late on Thursday, All Blue said it had made a non-binding offer for $10.50 per share in cash, which represents a 116% premium to Wednesday’s closing price of $4.86.

There is no certainty that Zymeworks, which carries roughly $65 million of debt, will negotiate a deal, people familiar with the matter said. The company unsuccessfully engaged with potential buyers last year, the sources added, requesting anonymity.

“Received an unsolicited, non-binding proposal from All Blue Falcons FZE and its affiliates to purchase the company for $10.50 per share in cash,” Zymeworks said in a statement, adding that its board of directors will carefully review the proposal.

Shares of Zymeworks jumped by more than 45% in after-market trade on Thursday after Reuters reported the bid.

In the filing, All Blue said it is currently in talks with potential co-investors and financing partners for the proposed acquisition.

Vancouver, Canada-based Zymeworks develops antibody treatments for different types of cancer and is currently working on clinical trials for a number of its products. It has repeatedly missed earnings estimates over the past few quarters and its shares have lost about 84% of their market value over the past 12 months.

“We believe that the company has suffered from severe value erosion due to a number of serious missteps by an unfocused leadership with no clear strategy for improving performance,” All Blue said in a letter to the company’s board of directors on Thursday.

“We believe that Zymeworks stockholders deserve better than the consistent value destruction they have suffered during this relatively short period of time,” they added.

In January, Zymeworks’ recently appointed Chief Executive Kenneth Galbraith announced that the company would need to immediately raise capital to continue operations and that it would lay off 25% of its workforce.

All Blue Capital is a technology-focused investment firm, whose investments include Airbnb, SpaceX, Lyft and Pinterest. All Blue currently holds a small stake in Zymeworks.

(Reporting by Anirban Sen and Rhea Binoy in Bengaluru; Editing by Greg Roumeliotis, Marguerita Choy, Sandra Maler and Sherry Jacob-Phillips)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Dollar edges up, euro falls before central bank meetings
Read More

Dollar edges up, euro falls before central bank meetings

Author of the article: The dollar edged higher on Monday as investors braced for a batch of central banks’ policy meetings this week, including the U.S. Federal Reserve’s. Market participants were keen to learn how quickly the U.S. central bank will unwind its bond-buying program and pick up signs of when it may start to…
Cargill Plant That Supplies 40% of Canada’s Beef Averts Strike
Read More

Cargill Plant That Supplies 40% of Canada’s Beef Averts Strike

Author of the article: Bloomberg News Marcy Nicholson and Layan Odeh (Bloomberg) — Union workers at a Cargill Inc. plant that accounts for about 40% of Canada’s beef supply have accepted a new labor contract, averting a strike that threatened to disrupt the nation’s meat market. Employees of Cargill’s plant in High River, Alberta, voted…
Goldman Sachs COO paid $33 mln in 2021
Read More

Goldman Sachs COO paid $33 mln in 2021

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content Goldman Sachs Group Inc said on Friday Chief Operating Officer John Waldron’s total compensation for 2021 was $33 million. (Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel) This advertisement has not loaded yet, but your article…