The emergence of reports of a takeover bid has resulted in a considerable spike in the share price of Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) during the current trading session. VNDA stock has risen impressively as of the latest check, increasing 24.16% to $6.27 on the US stock charts.
Vanda Takeover Proposal
Cycle Group sent a non-binding, unsolicited expression of interest, which Vanda Pharmaceuticals (VNDA) has confirmed receiving. On May 24, 2024, the Board of Directors was presented with a proposal to purchase all of the issued and existing VNDA shares for $8.00 in cash, which would value Vanda at $466 million in total.
All VNDA shareholders will get immediate and assured cash value from Cycle Group’s bid, which is 98% more than the closing share price on April 16, 2024—the day before Future Pak LLC’s original offer of $4.05 per share was made public.
It also offers a premium of 58% over Vanda’s closing share price on June 5, 2024, and a premium of 63% over Vanda’s closing share price on May 23, 2024, the day before Cycle Group’s application. This all-cash offer exceeds the cash portion of Future Pak’s revised proposal from May 7, 2024.
Financial Confidence And Strategic Review
Cycle Group, equipped with substantial cash reserves, has expressed strong confidence in securing committed financing for the transaction following limited due diligence. Cycle Group is optimistic about obtaining fully underwritten, binding commitment letters for any necessary debt financing prior to finalizing a definitive merger agreement, which will not include any financing contingency.
Cycle Group expects a quick and easy due diligence process because of its experience with Vanda and its broad industry understanding. It hopes to complete a definitive agreement in two to three weeks.
The Board of Directors will carefully evaluate and examine the expression of interest in order to determine what is best for the company and its investors in compliance with its fiduciary responsibility. It will also confer with independent financial and legal consultants.
