JLL Partners begins tender offer for PharmaNet

By Lisa Kerner

Charlotte, N.C., Feb. 12 - JLL Partners, Inc. affiliate PDGI Acquisition Corp. began its $5-per-share cash tender offer for all outstanding shares of PharmaNet Development Group, Inc.

The offer and withdrawal rights will expire at midnight ET on March 12 unless extended, PharmaNet said.

JLL, a New York private equity firm, said it will follow the tender offer with a second-step merger in which any shares of PharmaNet not tendered will be converted into the right to receive the same $5-per-share consideration.

PharmaNet's board of directors is recommending the company's shareholders tender their shares in the offer, which values the company's stock at approximately $100 million.

It was previously reported that a $250 million equity commitment from JLL will be used to finance the transaction and to retire the $144 million principal amount of the Princeton, N.J., drug development services company's outstanding convertible notes.

UBS Investment Bank advised PharmaNet on the transaction. JLL was advised by Jefferies & Co., Inc.

PharmaNet announced in December that it was considering strategic alternatives, including a possible sale of the company.

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