Sesen Bio Inc. (NASDAQ: SESN) has made the news lately, as its merging partner, Carisma Therapeutics has gone on to up its dividend payment from $25 million to a whopping $70 million. This bodes well for the future of the combined entities and hints toward a path of shared value creation.
Sesen Bio Shareholders Receive Generous Dividends
Sesen Bio Inc. (SESN) finds itself in the spotlight of the wider market, given a recent news update, relating to its merger agreement with the private pharmaceutical company, Carisma Therapeutics Inc. As part of the agreement, Sesen shareholders will be receiving a cash dividend of $0.34 per share, amounting to over $70 million, in total. This update comes after the previously stated amount was initially set at $25 million in total or $0.12 per individual share. This ‘treat’ to investors comes in addition to an earlier commitment made worth $30 million, which the management of Carisma claims to still stand by. This merger agreement is clearly in line with the best interests of the shareholders, as well as its future.
SESN Merger Overview
Looking into the planned merger between Sesen Bio and Carisma, it is clear that there are clear long-term benefits that shareholders face exposure to, in addition to the immediate cash dividend. The joint entity would boast the combined technical know-how, capability, and intellectual properties of both companies while enabling effective research to see carried out. The decision to merge comes after a rigorous assessment by the SESN board, which also considered liquidation as a strong option. After looking at 42 bid proposals, the board deemed Carisma as being the most optimal player to merge with.
SESN stock is on the verge of drastic change in its merger with Carisma Therapeutics. The $70 million cash payment paid to its shareholders is part of a long-term collaboration of joint success.