AstraZeneca Blocks SOBI's $8B Buyout, Advent Withdraws The Bid - Report

AstraZeneca Plc AZN blocked an $8 billion takeover of Swedish Orphan Biovitrum AB BIOVF by withholding its 8% stake in SOBI from a buyout offer by Advent International and Singapore wealth fund GIC.

• Advent and Singapore's sovereign wealth fund said they were withdrawing their bid for SOBI.
• In September, SOBI received a public cash offer from Advent International and GIC, valuing the company at nearly $8 billion (SEK69.4 billion) or $27.33 (SEK235) per share.
• SOBI focuses on rare diseases, offering hematology, immunology, and specialty indications treatments.
• AstraZeneca's opposition meant the offer fell short of the 90% threshold needed for approval.
• Having soared 36% this year through Thursday, Sobi shares fell 23% in early trade to 175 crowns on the Stockholm Stock Exchange. 
• Astra objected to the deal because it sought to buy certain assets from SOBI, reported Bloomberg, citing people familiar with the situation.
• AZN obtained a stake of about 8% in 2019 as part of an alliance. Sobi bought the rights to sell AstraZeneca's lower respiratory tract infections therapy in the U.S. 
• Private-equity ownership of Sobi would have raised the risk that Sobi would eventually be sold, and those rights would get in the hands of a rival of AstraZeneca.
• Price Action: AZN shares are down 0.64% at $54.44 during the premarket session on the last check Friday.