Revance Stock Rises as Teoxane Begins Talks for Potential Higher Acquisition Offer
Investing.com -- Revance Therapeutics' shares rose 3% in pre-market trading on Wednesday following news that it would begin discussions about a potential superior acquisition offer from Teoxane.
On January 6, 2025, Revance received a cash offer of $3.60 per share for all of its shares it does not yet own from Teoxane. The offer, which will be subject to due diligence by Teoxane and its lenders, will be financed through a combination of cash, a new minority stake, and debt. Teoxane's offer represents a 16% premium over the $3.10 per share price in Revance's amended and restructured merger agreement with Crown Laboratories.
The acquisition news surfaced after Revance's Board of Directors received a letter commenting on the Teoxane offer, which was subsequently discussed in a board meeting held on the morning of January 7, 2025. In this meeting, the board evaluated the offer with the assistance of management and advisors from Skadden and Centerview. As a result, the board unanimously concluded that the Teoxane offer could potentially lead to a Superior Proposal as defined in the A&R Merger Agreement.
Following the board's assessment, Revance informed Crown of its intention to enter into discussions and negotiations with Teoxane. The company is prepared to provide information to Teoxane under a Confidentiality Agreement deemed Acceptable according to the terms set forth in the A&R Merger Agreement.
The stock movements reflect investors' optimism regarding the potential acquisition, which could represent a significant change for Revance in terms of ownership and direction. The offer indicates a strategic move by Teoxane to strengthen its market position by acquiring Revance, and if the deal progresses, it could potentially benefit both companies.
As the situation develops, shareholders and potential investors will closely monitor the outcome of the negotiations and the possible impacts on Revance’s market position and financial performance.