Sorrento Therapeutics (NYSE:SRNE) is seeing SRNE stock soar on Friday following news of a takeover bid.
According to a Sorrento Therapeutics news release, the company received the bid on Thursday. It reveals that the offer comes from a private equity firm and values SRNE stock at $7 per share. The intention of the offer is to acquire a majority of, or all, outstanding shares of SRNE stock.
Sorrento Therapeutics says that it will be going over this offer with its Board of Directors and financial advisors. The goal is to do what it believes is best for the company and its shareholders. Of course, it also notes that there’s no guarantee a deal will take place.
The offer price of $7 per share for SRNE stock is a pretty premium. It’s roughly 105% higher than the stock’s closing price of $3.41 on Thursday, which was the last day of trading before news of the offer was announced.
It’s also worth mentioning that the offer for SRNE stock may be worth Sorrento Therapeutics accepting. While the company has traded higher in the past, it’s been below the $7 asking price since July of 2018. However, the current median price target from firms covering the stock is sitting at $24.50 per share.
Sorrento Therapeutics received another takeover bid in late 2019. This one valued SRNE stock between $3 and $5 per share. The company ultimately rejected this offer.
SRNE stock was up 42.23% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.