French pharma Sanofi-Aventis acquires Zentiva for $2.6 billion

23 September 2008

French pharmaceuticals company, Sanofi-Aventis SA has won the approval of the board of Czech generic drug maker Zentiva NV for its takeover offer after raising its bid to about €1.8 billion ($2.6 billion).

PPF, the Czech financial group, made a bid in May for 950 crowns a share for Zentiva in which it is the second largest shareholder by virtue of it owning a 20 per cent stake.

Sanofi-Aventis, which has a 24.9-per cent stake of Zentiva, countered the offer by offering 1,050 crown per share which was rejected by the board of Zentiva saying it did not reflect the future growth potential of the company.

Sanofi closed the deal by raising its offer to CZK 1,150 per share, a premium of approx 6 per cent to Zentiva's closing share price of 1,085 crowns on Friday.

After battling for four months, a relieved Jiri Michal, Zentiva's chief executive said in a statement, "We believe that the improved offer represents attractive value for Zentiva's shareholders, particularly in light of the current market turbulence.

As agreed in the deal, Michal will remain as CEO of Zentiva and would submit his 3.4 per cent stake and voting rights on an undiluted basis, along with other members of Zentiva's management holding 2.3 per cent in the company.