Biofrontera AG advised shareholders to reject private equity investor Deutsche Balaton AG's voluntary public offer to acquire a 14% stake in the company.
In a joint opinion, the company's management and supervisory boards said the offer to buy up to 6,250,000 of its shares at €1 each was financially inappropriate.
The boards said Deutsche Balaton did not disclose its strategic or operative targets for the company, particularly in terms of personnel changes, knowledge or expertise in Biofrontera's area of activity.
Stockholders who accept Deutsche Balaton's offer, which closes June 25, also receive a share buyback warrant, but enter into an additional issuer risk, according to the boards.
Stockholders were advised to exercise their voting rights from their Biofrontera shares themselves, instead of transferring them to Deutsche Balaton while largely bearing the stock's economic risk.
Biofrontera is a German developer of dermatological drugs and cosmetics.
