Zymeworks (NYSE:ZYME) stock is taking off on Friday after the company revealed an unsolicited offer from private equity firm All Blue Falcons FZE.
All Blue Falcons FZE is offering to buy the clinical-stage biopharmaceutical company for $10.50 per share. The offer is in cash and represents a 110.8% premium over the stock’s closing price of $4.98 on Thursday.
According to Zymeworks, its board of directors will review the offer and take action depending on what’s best for its shareholders. The company also mentions that no formal offer has been made by All Blue Falcons FZE.
So what does this mean for holders of ZYME stock? Currently, not much. The offer is non-binding and there’s no action shareholders need to take right now. Instead, they might want to wait and see if All Blue Falcons FZE follows this up with a formal offer for the company.
Zymeworks also notes that Kingsdale Advisors is acting as its strategic shareholder and communications advisor at this time. It also has Blake, Cassels & Graydon LLP and Wilson Sonsini Goodrich & Rosati giving it counsel.
ZYME stock is seeing heavy trading today on news of the buyout offer. That has about 27 million shares of the stock on the move as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 890,000 shares.
ZYME stock is up 35.2% as of Friday morning but is still down 60.5% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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