Cello Health PLC’s (LON:CLL) proposed takeover by private equity firm Arsenal Capital partners should go through, according to broker Liberum and is another positive sign for the health marketing sector, it said.
The bid values the health advisory firm at £178.8mln, or 161p per share, a 44% premium to Tuesday’s closing price.
“The Cello directors are confident that, as part of the value demonstration platform with Arsenal’s backing, Cello will be optimally positioned to accelerate its current strategy and capitalise on a broader range of opportunities,” said chief executive Mark Scott in a statement.
Liberum notes that the board have unanimously recommended the deal, which has also received irrevocable undertakings and letters of intent from 35.2% of shareholders.
“We expect the deal to complete and is another positive sign for the industry that it remains attractive and open for deals after Huntsworth was also taken out by PE in early March – although it’s worth noting that the high profile deals this year have been driven by relatively new PE funds.”
The broker adds that Huntsworth was acquired in March by Clayton, Dublilier and Rice and there have been several private trade sales recently to private equity.
Today’s announcement is the second sizeable deal for Arsenal this year, having announced the acquisition of a similar business called BresMed.