EQT not planning to bid for Oxford Biomedica

(Sharecast News) - Oxford Biomedica shares slumped on Wednesday after Swedish private equity firm EQT said it was not planning to make an offer for the gene and cell therapy company. In a brief statement, it said: "EQT is appreciative of the engagement with OXB's board of directors and management team and would like to thank them for their time and consideration of this potential transaction."

At 1240 GMT, OXB shares were down 5.1% at 648p.

In a separate statement, Oxford Biomedica noted that EQT submitted four proposals to the board, including two after the possible offer announcement which comprised possible cash offers, and the possibility of an unlisted share alternative.

"The board and its advisers carefully considered each proposal and, having consulted with certain key shareholders of OXB following the possible offer announcement, unanimously concluded that the proposals undervalued the company and its prospects and fell short of a recommendable level. The proposals were therefore rejected by the board."

It added: "The board has great confidence in the capabilities of its leadership team, evidenced by the continued momentum in the company and its attractive future prospects.

"OXB continues to make significant progress towards its financial objectives underpinned by its scalable end to end capabilities, sustained high demand and robust pipeline. These foundations reinforce the board's commitment to deliver on its strategy to lead the cell and gene therapy CDMO field as a trusted partner with unmatched quality and innovation and create significant value for shareholders."