Jounce dumps Redx Pharma for acquisition by Concentra; to cut 84 per cent of jobs, Health News, ET HealthWorld
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The new Concentra deal also involves a workforce reduction of about 84 per cent of Jounce's employees, compared to about 57 per cent as part of the Redx deal, Jounce said in a statement.
The deal with Concentra, which is controlled by Jounce investor Tang Capital Partners, provides an upfront payment of $1.85 per share to Jounce's shareholders, plus contingent value rights of 80 per cent of the net proceeds that come from licencing or disposing of some Jounce assets.
Concentra Biosciences' offer price represents a 22.5 per cent premium over the last close. The private firm will acquire the shares through a tender offer by April 7, Jounce said.
The Concentra deal closure, expected in the second quarter, is subject to Jounce having at least $110 million in net cash reserves. Tang Capital owns a 10.2 per cent stake in Jounce. Jounce Therapeutics' shares rose 23 per cent to $1.85 in morning trade.
Redx had last month agreed to an all-stock merger with Jounce, valuing the combined company at $425 million, and with Jounce shareholders owning 37 per cent of it.
Redx shares fell 11 per cent on the London Stock Exchange after the Jounce deal fell through on Monday, with the British company company voicing its disappointment.
"Whilst the offer for Redx has not formally lapsed under the UK Takeover Code, the board will consider all options available to it in line with our strategy," Redx Chair Jane Griffiths said in a statement. Concentra's acquisition is expected to close in the second quarter of 2023.
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Tuesday, March 28, 2023 at 6:00 am