Sobi take-private collapses, ending new year jumbo financing hopes

Advent and GIC have withdrawn their offer for Swedish Orphan Biovitrum AB (publ), or Sobi, after the take-private bid for the rare-disease pharma group failed to win enough shareholder support.

In a statement today, bidding vehicle Agnafit said shares corresponding to 87.3% of the company had been tendered, which was below the conditional threshold of 90%. "Since the acceptance level condition has not been fulfilled, Agnafit Bidco hereby withdraws the Offer," the firm said.

The collapse of the deal removes one of the major leveraged financings expected for launch next year. The deal had valued the company at SEK 69.4 billion (€6.8 billion) and was set to bring a multibillion cross-border financing across bonds and loans.

This still leaves other jumbo deals for the new year pipeline, not least from the mooted £5.4 billion bond and loan financing backing CD&R’s takeover of British supermarket group Morrisons. The deal had been tipped for late November launch but is now expected to be a 2022 affair given this year’s rapidly closing launch window coupled with on-going market volatility. High-yield had been set for a full issuance launch calendar for this week before a sell-off over Friday and Monday muted activity, sources note.

Sobi is an international biopharmaceutical company focused on rare diseases. It specializes in hematology and immunology, and also has a portfolio of specialty care products.