The board of German drugmaker Stada has recommended its shareholders accept a renewed takeover offer from Bain Capital and Cinven, paving the way for Europe’s largest private equity buyout in four years.

The company received two takeover offers through a structured bidding process earlier this year, eventually settling on a proposal from Bain and Cinven. But that offer attracted interest from those holding about 63 percent of Stada’s shares,  below the original threshold for the deal to proceed set at 75 per cent

Under the terms of the latest offer, the private equity firms would pay €65.53 a share for Stada, and investors would receive a dividend of 72 euro cents a share. The new bid valued Stada’s equity at €4.1 billion. Including debt, it would value Stada at €5.3 billion.

Stada said its executive and supervisory boards “have reached the conclusion that the renewed takeover offer is in the best interest of the company and all of its stakeholders”, after Bain and Cinven won an exemption from regulatory rules allowing it to make a new offer.

Source: Financial Times, The New York TImes