Barrier Therapeutics Huge Premium Buyout (BTRX)
Barrier Therapeutics, Inc. (NASDAQ:BTRX) is seeing shares surge after it has signed a merger agreement with Stiefel Laboratories, Inc., the world’s largest independent pharmaceutical company specializing in dermatology.
Stiefel Laboratories will purchase all of the outstanding stock of Barrier Therapeutics in a cash buyout valued at $4.15 per share. This price is a 73% premium to Barrier’s average closing price for the past 30 days and is more than a 100% premium to Friday’s close.
While the transaction is a high premium buyout, it is valued at approximately $148 million. This is subject to the valid tender of a majority of Barrier Therapeutics’ votes, regulatory approvals and other customary conditions; but the merger is not subject to any financing conditions and it is expected to close by the end of the third quarter of 2008.
Barrier Therapeutics’ Board of Directors has approved the definitive merger agreement, and teh board has recommended that shareholders tender their stock. What is inetresting though is that there is an actual chance that some shareholders will fight this deal. The 52-week trading range is $1.63 to $7.60. A $4.15 acquisition price is a great deal for any new holders that have owned this stock since late in 2007 to now. But it won’t make any of the old holders whole and back in early 2006 Barrier traded briefly at prices north of $20.00.
With 1 minute to the open, we have already seen some 2.6 million shares trade hands and the last price was at $4.01.
Jon C. Ogg
June 23, 2008