BASF buy omega-3 fatty acids maker, Pronova BioPharma

BASF to buy omega-3 fatty acids maker, Pronova BioPharma

7:08 AM, 21st November 2012
BASF to buy omega-3 fatty acids maker, Pronova BioPharma
Michael Heinz, Board Member, Executive Directors, BASF SE.

LUDWIGSHAFEN, GERMANY: BASF plans to acquire Pronova BioPharma ASA, Lysaker, Norway, a pioneer in the field of research, development, and manufacturing of omega-3 fatty acids. BASF expects to finalize the transaction in the first quarter of 2013.

BASF has reached an agreement with Pronova to make a recommended voluntary public takeover offer to Pronova’s shareholders, offering to pay NOK 12.50 in cash per share. The offer is a 24 per cent premium above the volume-weighted average share price for Pronova’s shares. This makes the enterprise value of Pronova, NOK 4,845 million (approximately €664 million).

The board of directors of Pronova and the management recommend its acceptance. In addition, BASF has obtained irrevocable pre-acceptance commitments for approximately 60 per cent of Pronova’s share capital; including 50 per cent stake held by majority shareholders Herkules Private Equity Fund, 9.1 per cent stake indirectly controlled by Kistefos AS and Kistefos Investment AS and 0.3 per cent held by board members and management of Pronova.

“The intended acquisition will significantly strengthen our position in the fast growing and highly profitable market for omega-3 fatty acids. We want to combine the global market reach and experience of BASF with the know-how of Pronova in omega-3 fatty acids,” said Michael Heinz, Board Member, Executive Directors, BASF SE.

Highly concentrated omega-3 fatty acids are a globally growing market, driven by an increasing consumer awareness of omega-3 fatty acids health benefits. With the acquisition of Pronova, BASF will immediately achieve a leading position in the global market for omega-3 fatty acids. The offer will be made by BASF’s wholly-owned subsidiary BASF AS in Norway.

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