Catalent (NYSE:CTLT) stock is climbing higher on Monday after the company agreed to sell itself to Novo Nordisk (NYSE:NVO) parent Novo Holdings for $16.5 billion.
The transaction will have Novo Holdings paying $63.50 per share in cash for CTLT stock. That represents a premium of 16.5% over the closing price for Catalent’s stock on Friday. It’s also a 47.5% premium to the 60-day volume-weighted average price of the shares.
After the deal closes, Novo Holdings intends to sell three of Catalent’s 60 locations to Novo Nordisk. These are in Anagni, Italy, Bloomington, Indiana and Brussels, Belgium.
The facilities being sold to Novo Nordisk are fill-finish sites for drug making. These will be sold for $11 billion and will allow the company to expand production of its Wegovy weight loss drug.
Timing of the CTLT Stock Deal
Catalent and Novo Holdings are expecting the acquisition to close by the end of 2024. The two companies are also waiting for approval from shareholders and regulators to complete the deal. Elliott Investment Management L.P., a significant investor in Catalent, supports the deal.
CTLT stock is experiencing heavy trading on Monday alongside news of the sale. This has more than 7 million shares of the stock changing hands as of this writing. That’s well above its daily average trading volume of about 1.9 million shares.
CTLT stock is up 9.8% 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.
