Seattle Genetics to acquire Cascadian Therapeutics for $10.00 per share in cash
Seattle Genetics (SGEN) and Cascadian Therapeutics (CASC) announced the signing of a definitive merger agreement under which Seattle Genetics has agreed to acquire Cascadian Therapeutics.
Under the terms of the agreement, Seattle Genetics will pay $10.00 per share in cash, or approximately $614M.
The transaction was unanimously approved by the Boards of Directors of both companies.
Under the terms of the definitive merger agreement, Seattle Genetics will commence a tender offer on or about February 8, 2018 to acquire all of the outstanding shares of common stock of Cascadian Therapeutics for $10 per share in cash.
This represents a 69 percent premium to the closing price of Cascadian Therapeutics’ common stock on Tuesday, January 30, 2018, and a 139 percent premium to its 30-day volume weighted average stock price.
The tender offer is subject to customary closing conditions, including the tender of at least a majority of the outstanding shares of Cascadian Therapeutics common stock and the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Following the closing of the tender offer, a wholly-owned subsidiary of Seattle Genetics will merge with and into Cascadian Therapeutics, with each share of Cascadian Therapeutics common stock that has not been tendered being converted into the right to receive the same $10 per share in cash offered in the tender offer.
The transaction is anticipated to close in the first quarter of 2018. In connection with the transaction, Seattle Genetics has secured a financing commitment in the amount of $400 million from Barclays and JPMorgan-Chase Bank.
The balance of the consideration will be provided from cash on hand.
CASC closed at $5.90.
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