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Savient to repurchase up to 10 million shares
By Elaine Rigoli
Tampa, Fla., Aug. 14 - Savient Pharmaceuticals, Inc. said it started an offer to repurchase up to 10 million shares of its common stock in a modified Dutch auction tender offer at a price of not greater than $6.80 or less than $5.80 per share.
If Savient repurchases the full 10 million shares, the offer will result in the repurchase by Savient of about 16.2% of its currently outstanding shares.
The tender offer will be financed from the company's existing cash position.
The tender offer, proration period and withdrawal rights will expire at 9 a.m. ET on Sept. 12, unless the tender offer is extended, according to a news release.
Subject to applicable law, Savient reserves the right to accept for payment, according to the terms and conditions of the tender offer, up to an additional 2% of Savient's outstanding shares, or about 1.2 million shares.
"The board believes that the recent trading price range of Savient's shares is not fully reflective of the value of the company's business and future prospects. Consequently, the repurchase of Savient's shares represents an attractive investment and an efficient means to provide value to our stockholders," president and chief executive officer Christopher Clement said in the release.
"In determining the size of the share repurchase plan, the board of directors carefully considered a broad range of factors including cash flow from operations and the estimated cost of completing the full clinical development for, and commercial launch of, our Puricase drug candidate currently in phase 3 clinical trials for treatment-failure gout, and the possible timing and effect of a generic version of Oxandrin."
Savient is a pharmaceutical company located in East Brunswick, N.J.
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