Oxford Biomedica’s share price has rocketed in early morning trading after Swedish private equity firm EQT entered takeover talks for the gene and cell therapy group.
Shares jumped 10.65 per cent to 889 pence, with shares rocketing 121.4 per cent over the past year.
The FTSE 250 company said it has received an unsolicited approach from EQT and was in preliminary discussions with the buyout group over a possible cash offer.
EQT has until 11 February to make a firm offer to the Oxford-headquartered company, which has a market capitalisation of more than £900m.
Target European companies
Oxford Biomedica said EQT had also made previous unsolicited proposals to but the company, but it had rejected them because it deemed them to undervalue the business.
The firm’s latest approach follows several deals by global buyout firms targeting Europe’s listed companies.
Firms are looking to take public companies private as the industry seeks to profit from the continent’s relatively cheap stock.
KKR beat US peer Advent in a bidding war, snapping up UK scientific instruments maker Spectris for roughly £4.7bn, while British group Permira completed a £2.7bn deal for fund administrator JTC.
EQT which manages €267bn (£231bn) in assets, last completed a European takeover in 2024, when it led a consortium that bought Irish video games company Keywords Studios for £2.2bn.
The group has also previously acquired Dechra Pharmaceuticals for £4.5bn and owns Europe’s biggest vets company, IVC Evidensia.
Oxford Biomedica bounceback
During the Covid pandemic, the company parterned with Astrazeneca to help manufacture the Oxford University Covid-19 vaccine, which raised its profile and finances.
However, a biotech slump and a change in leadership and strategy at the group led to a cut to forecasts and a share price slump.
But a £60 million fundraising round, promotion back to the FTSE 250 and an acquisition in the United States has helped uplift its shares.