Shares in Irish life sciences company Malin were up over 40% today after it announced US firm Poseida, in which it has invested, is to be sold.
Pharma giant Roche has agreed to buy Poseida for $9 a share in cash and $4 a share in cash in contingent payments if milestones are met.
Malin will receive $106.5m for the 12% it owns of the business, plus up to a further $47.3m if the contingent payments are made.
Malin said the deal is due to close in the first quarter of next year.
Malin had been proceeding with a tender offer it announced earlier this month which would have allowed shareholders sell their shares back to the company for €6.55 a share.
However, in light of the latest deal that will not now proceed.
"The sale of Poseida is a very significant milestone for Malin in our continuing strategy to deliver maximum value to shareholders and Malin remains committed to returning excess capital of the business to Malin's shareholders," said Liam Daniel, chair of Malin.
"In light of this positive development and the significant uplift in the estimated Intrinsic Equity Value per share, the board of Malin considers it to be in the best interests of shareholders to terminate the Tender Offer launched on 12 November 2024."
"The Board will take the financial effects of this Transaction into account as part of its deliberations on the timing and scale of future returns of excess capital to shareholders and will issue further updates in due course."
