bluebird bio announced that all required regulatory approvals to complete the acquisition by global investment firms Carlyle and SK Capital Partners have been received.
The parties expect to complete the merger, first revealed in February, following the successful completion of the ongoing tender offer, which is scheduled to expire on May 13.
Under the terms of the merger agreement, stockholders will receive an upfront payment of $3 per share in cash and a contingent value right of $6.84 per share in cash payable upon achievement of a net sales milestone, for a total potential value of $9.84 per share.
bluebird bio warned stockholders that the transaction is the “only viable option” and urged them to immediately tender shares into the offer.
“Absent a majority of stockholders tendering, bluebird is at significant risk of defaulting on its loan agreements with Hercules Capital and it is extremely unlikely that stockholders would receive any consideration for their shares in a bankruptcy or liquidation,” said Mark Vachon, chairman of bluebird’s board of directors.
Carlyle and SK Capital will provide the cash-strapped bluebird primary capital to scale its commercial delivery of gene therapies for patients with sickle cell disease, β-thalassemia, and cerebral adrenoleukodystrophy.
"With this update, we have a clear path forward to close the transaction and officially begin the next chapter of bluebird’s journey to deliver potentially curative gene therapies in the commercial setting," said bluebird CEO Andrew Obenshain.
Subscribe to our e-Newsletters
Stay up to date with news, articles and insights relevant to cell and gene therapy development and manufacturing. Plus, get special offers from Cell & Gene Therapy Review delivered right to your inbox!
Sign up now!