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So Sanofi is fetching $2.2 billion for its EU generics unit Advent.
With 115 million O/S, $2.2 billion for MERGED AKBA would fetch $19/share and suitor would get both companies and science technologies.
$19/share would equate to $7.11/share for KERX pre-merger.
If suitor acquired KERX today for $7.11/share, with 155 million O/S fully converted, suitor would pay $1.1 billion.
So at $2.2 billion for both companies, basically, suitor would be paying $1.1 billion for each company, meaning, AKBA would be valued equal to KERX which is preposterous.
But, here’s the thing — if KERX were to be acquired today for $2.2 billion, with 155 million O/S fully converted, that would equate to $14.19/share which is the low-end of KERX’s true value. That is to say, if KERX shareholders received $14.19/share for their holdings today, they could at least say they were made good after all the suffering and pain for YEARS.
But NO, in the scenario of $2.2 billion for MERGED AKBA, the suitor gets 2 companies. In other words, one could say the suitor is getting one company for free since KERX alone is worth $2.2 billion.
That my friends is a hypothetical scenario of what the .3743 conversion ratio swindle potentially amounts to, suitor getting one company for free — courtesy of longtime suffering and bamboozled KERX shareholders.
As for AKBA shareholders, they would receive $19/share for 100% of their shares, not 37.43% of holdings with would be the case for swindled KERX shareholders.
Btw, $2.2 billion for KERX, basically equates to Auryxia valuation of $700 million peak sales with a 3X multiple which is quite reasonable and potentially real with both, hyperphosphatemia and IDA indications in U.S. and EU.
The “merger” is the swindle of all swindles for KERX shareholders — nevermind the shorts potentially getting “off the hook “.
ALL IMO
AI
