CTI BioPharma (NASDAQ:CTIC) stock is taking off on Wednesday after the company announced a major acquisition deal with Sobi.
This deal has Sobi agreeing to acquire CTI BioPharma for $1.7 billion. This has it offering up $9.10 per share for CTIC stock. That represents an 89% premium to CTI BioPharma’s closing price on Tuesday. It’s also a 95% premium to its 30-trading day volume-weighted average price of $4.67.
Sobi will use a wholly-owned subsidiary to conduct a tender offer for all outstanding shares of CTIC stock. BVF Partners L.P., a 6.7% shareholder in CTI BioPharma, has agreed to tender its shares as part of the deal.
CTI BioPharma and Sobi are expecting the deal to close in the third quarter of 2023. As a result of today’s announcement, CTI BioPharma won’t release a Q1 earnings report. When the deal closes CTI BioPharma will become a subsidiary of Sobi.
What This Means for CTIC Stock
When Sobi completes its acquisition of CTI BioPharma, shares of CTIC stock will no longer trade publically. Also, shares not tendered in the offer will be canceled. Holders of these shares will still receive rights each worth the $9.10 buy price.
Today’s news also brings with it heavy trading of CTIC stock. As of this writing, more than 28 million shares of the stock have been traded. That’s a massive increase compared to its daily average trading volume of about 3 million shares.
CTIC stock is up 84.5% as of Wednesday morning.
Investors seeking more of the most recent stock market news will want to keep reading!
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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.