Egis Climbs Most on Record After Servier Offer: Budapest MoverAndras Gergely
Egis Nyrt. jumped the most on record after the Hungarian drugmaker received a buyout offer from its majority owner Les Laboratoires Servier.
The stock soared 31 percent to 27,495 forint by the close in Budapest, the biggest gain since 1995, according to data compiled by Bloomberg. Trading was suspended yesterday after Servier, which already controls 51 percent of the company, offered 28,000 forint per share for the rest. The benchmark BUX stock index rose 1.6 percent, as Gedeon Richter Nyrt., Hungary’s biggest drugmaker, added 2.4 percent, extending its advance in the past two days to 6.6 percent.
Egis, which has the fifth-largest market value on the stock exchange, will be pulled off the bourse because it doesn’t need equity financing, said Pascal Touchon, Servier’s director of business development. The board of directors will discuss the offer on Oct. 1, state news service MTI reported yesterday, citing Chief Executive Officer Istvan Hodasz.
“After opening a few hundred forints below the offer price, the stock may gradually converge to it in the next two months,” analysts at Erste Group Bank AG led by Jozsef Miro wrote in an e-mailed report. “Today’s trading will probably be all about drugmakers as the Egis offer also increased interest in Richter.”
The offer price is final and Servier will not increase the price, Touchon said yesterday, adding that the company wasn’t planning any post-bids after the acceptance period ends, regardless of the original offer’s outcome.
“Even if some minorities dissent, Egis shares are likely to be delisted,” James Vane-Tempest, a London-based equity analyst at Jefferies, said in an e-mailed note. Servier can pass a motion to delist the shares with 75 percent of shareholders’ votes, he said.