Collagen leaps after takeover offer disclosed
Shares in Collagen Solutions, the Glasgowbased life sciences firm, shot higher as it agreed a 6.5p-per-share takeover offer from its largest shareholder, Us-based Rosen’s Diversified.
The offer price represents a huge premium that is more than double the 2.5p closing share price of Collagen on Wednesday. By the close of play last night, the shares had gained 160 per cent to 6.5p.
Collagen recently released results saying that discussions were “ongoing” regarding its previously announced strategic review and formal sales process.
Chris Brinsmead, non- executive chairman of Collagen, said in a statement yesterday: “Collagen has built a high-performance team and significant portfolio of customers and projects, well positioning the company in the exciting regenerative biomaterials and tissue market.
“The offer from RDI [Rosen’s Diversified Inc] recognises this strategic value and pro - vides an attractive opportunity for share - holders to realise immediate value at a significant revenue multiple and premium to both the historical and prevailing share price.”
Wade Rosen, director of RD I, added: “While we recognise that the board of Collagen had to undertake the formal sale process in order to maximise shareholder value, we have always felt that we are the best partner for the company.
“We are, therefore, looking forward to the offer completing as soon as practicable, such that we can then fully welcome the company and its team members into the RDI organisation.
“Our recommended offer also provides Collagen shareholders with the certainty of a cash exit, in full, at a substantial and attractive premium over the prevailing value of their Collagen shares at a time of considerable global macroeconomic uncertainty.”
Shares in Rolls-Royce dipped 3 p to 250p after the engine-maker unveiled further action to boost its battered finances as it plunged to a record £5.4 billion halfyear loss after the Covid-19 pandemic sent demand for air travel slumping.
The benchmark FTSE-100 Index of Britain’s top companies, of which Rolls is a component, slid 45.61 points to 5,999.99.