LogicBio (NASDAQ:LOGC) stock is seeing massive gains on Monday following news that AstraZeneca (NASDAQ:AZN) subsidiary Alexion is acquiring the clinical-stage genetic medicine company.
The deal has Alexion agreeing to a cash tender offer for all outstanding shares of LOGC stock. This offer values the company’s shares at $2.07 each. That’s an incredible 667% premium from the stock’s closing price on Friday!
Marc Dunoyer, CEO of Alexion, said the following about the acquisition deal:
“The proposed acquisition of LogicBio is a significant development for our growing research in genomic medicine. LogicBio’s people, experience and platforms provide new scientific capabilities by adding best-in-class technology and expertise to our genomic medicine strategy.”
Alexion will use a subsidiary to complete its acquisition of LogicBio. When that deal closes, the company will keep LogicBio’s employees and have them continue to work out of the company’s current location.
Timing of the LogicBio Deal
Alexion and LogicBio are expecting the acquisition deal to close in the next four to six weeks. This requires a majority of shares tendered in the offering. Also, other closing conditions need to be met.
One problem Alexion and LogicBio are unlikely to run into is resistance from executives. Both companies have noted their Boards of Directors have given unanimous support to the deal.
Today’s news brings heavy trading to LOGC stock. As of this writing, more than 6 million shares of the company’s stock have been traded. That’s quite the increase over its daily average trading volume of about 185,000 shares.
LOGC stock is up 643.1% as of Monday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
