Medicult disclaims Swedish offer
The Norwegian company Medicult's Board is highly sceptical to the yesterday announced Vitrolife offer.
The implicit conversion value of the MEC share is substantially below what the Medicult Board of Directors believes is a fair valuation of its shares. Specifically the offer places no value at Medicult pipeline of projects within the field of IVF products and well-defined media for stem cells applications. Furthermore, no fair value seems to be reflected of the full positive benefits of the recent acquisitions in US.
Another reason for the scepticism is that the structure of the offer is a shares-for-shares deal. As the Board is uncertain as to the evaluation of the shares in Vitrolife it is the opinion of the Board that it should only recommend to its shareholders a deal-structure that is either all cash or with a significant cash-component.
In order to protect the interests of Medicult and to evaluate its strategic alternatives, the Board of Directors intends to hire an investment bank as its advisor.
