XOMA Royalty Completes Tender Offer and Merger with HilleVax
XOMA Royalty Completes Tender Offer for HilleVax, Inc.
In an exciting development, XOMA Royalty Corporation (NASDAQ: XOMA) has announced the successful completion of its tender offer aimed at acquiring all outstanding shares of HilleVax, Inc. (NASDAQ: HLVX). This significant move is seen as a strategic advancement in the biotechnology sector, reinforcing XOMA's commitment to boosting human health through its innovative financial frameworks.
The Tender Offer Details
Under the terms of the tender offer, XOMA offered a purchase price of $1.95 per share in cash, accompanied by a contingent value right (CVR). This offer was aimed at enabling the shareholders of HilleVax to gain from the valuable potential of their investments while allowing XOMA to expand its portfolio of promising therapeutic candidates.
Expiration of the Tender Offer
As outlined in the initial announcement, the tender offer and its related withdrawal rights concluded at 11:59 p.m. Eastern Time on a specified date. Ultimately, a remarkable total of 39,214,689 shares, which accounted for approximately 77.48% of HilleVax's outstanding shares, were tendered. This level of participation not only fulfilled but exceeded the minimum tender condition needed for the acceptance of the offer.
Post-Completion Developments
Following the successful completion of the tender offer, XOMA's subsidiary, XRA 4 Corp., merged with HilleVax. This merger signifies that HilleVax has transitioned into a wholly owned subsidiary of XOMA Royalty. It is expected that shares of HilleVax will cease trading on Nasdaq, with plans for delisting and deregistration under the relevant securities act to follow promptly.
Strategic Benefits for XOMA Royalty
This merger with HilleVax is more than a mere financial transaction; it is a calculated step that reflects XOMA Royalty's desire to enhance its asset portfolio. By acquiring companies like HilleVax, XOMA strengthens its position as an effective royalty aggregator, providing crucial non-dilutive funding to biotech firms striving to develop innovative health solutions.
XOMA's Vision and Strategy
XOMA Royalty Corporation specializes in acquiring future revenue potentials linked to both pre-commercial and commercial therapeutic candidates. These acquisitions grant sellers necessary resources to push their internal drug developments while establishing XOMA as a vital financial ally within the biotech arena.
Leadership and Advisory Support
In navigating this complex tender offer and merger process, XOMA Royalty received invaluable legal and financial guidance. Representing the company was the esteemed law firm of Gibson, Dunn & Crutcher LLP, while Leerink Partners acted as the exclusive financial advisor. Additionally, Latham & Watkins LLP provided legal counsel to HilleVax, ensuring that all regulatory and operational aspects were meticulously handled.
Conclusion
This recent succession marks a significant milestone for XOMA Royalty Corporation as it continues to evolve in the biotech investment landscape. With a robust strategy aimed at generating substantial returns through its strong portfolio, XOMA remains committed to collaborating closely with biotech companies dedicated to improving health outcomes. As XOMA Royalty forges ahead, it sets a remarkable example of how financial ingenuity can intersect with scientific advancement to create a healthier future.
Frequently Asked Questions
What was the purpose of the tender offer made by XOMA Royalty?
The tender offer aimed to acquire all outstanding shares of HilleVax, enhancing XOMA’s investment portfolio by integrating valuable assets.
How does XOMA Royalty benefit from acquiring HilleVax?
This acquisition allows XOMA to broaden its asset portfolio and provide non-dilutive funding to biotech companies, supporting their developmental efforts.
What was the acceptance rate for the tender offer?
Approximately 77.48% of HilleVax's outstanding shares were validly tendered and accepted in the offer, exceeding the minimum required.
What happens to HilleVax shares following the merger?
HilleVax shares will cease trading on Nasdaq and will subsequently be delisted and deregistered under applicable laws.
Who provided advisory support during the transaction?
XOMA Royalty was advised by Gibson, Dunn & Crutcher LLP for legal matters and Leerink Partners for financial guidance during the tender offer and merger.
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