Good point, for regulatory reasons maybe that needed to be done. Remember the deal for Novartis of the $7 mil and $650 mil payment is pending regulatory approval. Which is expected to happen in mid 2017. So that may have needed to be done to remove that large shareholder out.
I spoke with CNAT UR today. The advent fund(s) liquidating shares are very old and they want to dissolve that MLP. I believe he said the CNAT shares were the last remaining holding. This was from way back before CNAT was public.
CNAT knew this and had a good relationship with these guys. CNAT approached them and suggested this transaction allowing advent to sell all it's CNAT shares at once without killing the market. They can then liquidate and Claire the partnership
The deal allows CNAT to offer a bigger number of shares to new investors. CNAT wants to get a broader institutional holder base. Institutions had stayed away from prior offerings, but will buy into this one now that the option has been exercised by Novartis.
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