Abcam Plc, the biotechnology supplier whose founder is seeking to replace some of its board members, has received multiple takeover approaches.
(Bloomberg) — Abcam Plc, the biotechnology supplier whose founder is seeking to replace some of its board members, has received multiple takeover approaches.
The UK company has “received strategic inquiries from multiple parties over recent weeks,” likely due to the publicity around its upcoming shareholder meeting, Abcam said in a statement Friday. The board is aware of its fiduciary duties “and will work with its advisors to consider such inquiries as appropriate,” according to the statement.
Cambridge, England-based Abcam has attracted interest from suitors including some of the largest US suppliers of life-sciences tools and is in discussions on a potential sale, people with knowledge of the matter said. A representative for Abcam declined to comment beyond the statement.
Abcam’s American depositary shares jumped as much as 15% in US trading Friday, hitting the highest intraday level since January 2022. They were up 14% at 2:19 p.m. in New York, giving the company a market value of about $5 billion.
Investors view Thermo Fisher Scientific Inc., Danaher Corp. and Germany’s Merck KGaA as the most likely trade bidders for Abcam, Royal Bank of Canada wrote in a research report Friday.
‘Bioprocessing Tailwind’
“Abcam did not benefit from the bioprocessing tailwind enjoyed by many life science tools peers over the last few years, and equally now does not face the customer destocking headwinds, which may also be attractive,” RBC analysts including Charles Weston wrote in the report.
Abcam said Friday it will hold an extraordinary general meeting July 12 at the request of founder Jonathan Milner to consider his proposals to remove three directors and name himself executive chairman. The company recommended shareholders vote against all the resolutions, which it said would lead to “a protracted period of uncertainty” and put its growth at risk.
“The net effect of these changes would be a sudden and significant shift in both operational and executive leadership of Abcam that puts in jeopardy the company’s recent momentum as well as its day-to-day operations,” Abcam said in a letter to shareholders released Friday. “Dr. Milner’s ‘plan’ for value creation is, in reality, not a plan at all.”
Amazon of antibodies
Abcam runs an online store selling a variety of protein research tools to life scientists, ranging from reagents and cellular assays to enzymes and imaging products and is sometimes referred to as the “Amazon of antibodies.” Milner, a British scientist who founded Abcam, is one of its largest shareholders with a 6.3% stake.
“The current board and management team have neglected shareholder interests and driven the share price to be undervalued, opening up the company to low M&A bids that clearly are in play now,” Milner said in an emailed statement Friday. “My intervention and plan is a defense against these low offers.”
Milner started Abcam in 1998, helped grow the company through its 2005 initial public offering and served as chief executive officer until 2014. He then became deputy chairman, before eventually stepping down from the board in October 2020. He has since focused on investing in early-stage life sciences companies and other high-tech startups in the UK.
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