Bluebird says Ayrmid missed deadline for rival takeover bid
Bluebird bio is still waiting on a binding takeover bid from Ayrmid Ltd., three weeks after the company said it would pay $15 million more than SK Capital and Carlyle Group offered for the gene therapy maker.
In a Wednesday statement, Bluebird board chair Mark Vachon said Ayrmid has yet to present a binding offer or acquire the financing necessary to complete its $45 million proposal. The initial deadline for Ayrmid to produce an offer was April 11, which Bluebird had agreed to extend for four days.
“Ayrmid’s proposal remains highly conditional, despite an extension to the previously agreed-upon timeline to complete confirmatory diligence and submit a binding offer,” Vachon said.
In a regulatory filing, Bluebird reported that “representatives of Ayrmid informed management that they were unable to obtain committed financing and make a binding offer by that day’s deadline and that they were continuing to pursue financing and expected to provide an update in the coming week.”
The board of directors reiterated its recommendation that Bluebird pursue SK Capital and Carlyle’s takeover bid, which is worth almost $30 million. The two firms offered $3 per share in upfront cash, with a $6.84 per share contingent value right payment.
Ayrmid offered $4.50 per share upfront, along with the same contingent value right payment.
If Bluebird backs out of the offer with SK Capital and Carlyle, it could owe the two firms as much as $1.5 million in termination fees, or $300,000 in expense reimbursement, according to a regulatory filing. The deadline for shareholders to tender their stock to the offer is now May 2.
The gene therapy developer originally agreed to a take-private deal with SK Capital and Carlyle in February after revealing it was at risk of defaulting on its loans. Under the terms of the agreement, former Ipsen and Mirati Therapeutics CEO David Meek will take over as head of Bluebird. Capital provided by the private equity firms would be used to continue commercializing the three gene therapies Bluebird brought to the market for sickle cell disease, beta thalassemia and cerebral adrenoleukodystrophy.
Shares in Bluebird have lost about 80% of their value over the past year as the company hit financial difficulties and struggled to sell its treatments. Its share price fell 7% Wednesday.
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