Healthcare investment fund Gurnet Point LP agreed to acquire Innocoll Holdings PLC on the terms of a recommended offer, in a transaction valued up to about $209 million.
Under the offer, Cambridge, Mass.-based Gurnet Point will acquire Ireland-based Innocoll for $1.75 per share in cash and up to $4.90 per share in cash from a contingent value right for a total potential per share value of $6.65, Innocoll said-.
During the offer period, Gurnet Point intends to provide a term loan of $10 million to help Innocoll develop its pain relief treatment Xaracoll, providing additional capital for the resubmission of a new drug application to the U.S. FDA, to achieve certain CVR-related milestones.
Innocoll's board intends to recommend unanimously that shareholders vote in favor of the transaction. Innocoll directors and major shareholders, including holdings managed by Fortress, Morgan Stanley, Sofinnova and Unique Technologies, provided irrevocable undertakings to vote in favor of the scheme.
Innocoll previously said that it is in talks regarding an offer for the company's entire issued share capital following irregular movements in its share price.
Evercore Partners International LLP is acting as financial adviser for Gurnet Point, and Piper Jaffray & Co. is acting as financial adviser for Innocoll.