EQT, Investor AB increase share offer for Gambro

EQT and its founder Investor AB have increased their share offer for Swedish medical technology business Gambro by Skr1.2billion.

Swedish private equity firm EQT and Investor AB, EQT’s founder and the largest holding company in Scandinavia, have increased the offer price for listed medical technology company Gambro.

EQT and Investor AB made a Skr111 per share offer for all outstanding shares in Stockholm-headquartered Gambro, which valued the company at approximately Skr38 billion (€4 billion; $5.18 billion).

Yesterday, the two firms announced that they have increased the offer price to Skr113.7, representing an increase of Skr1.2 billion, giving Gambro a market capitalisation of €4.17 billion ($5.34 billion).

By the end of the original May 10 offer period, EQT and Investor AB, through acquisition vehicle Indap, had acceptances from 44 percent of the share capital and 47.3 percent of the voting rights, which included 68.5 million shares already owned by Investor AB. Indap requires ownership of 90 percent of Gambro’s share capital in order to take the company private.

As a result, Indap has extended the offer’s acceptance period until May 31 in order to provide Gambro shareholders who have not yet tendered their shares to tender into the increased offer.

Thomas von Koch, senior partner at EQT Partners, and Lennart Johansson, managing director at Investor AB, said in a joint statement: “The revised offer represents an increase of approximately Skr1.4 billion, which is a substantial improvement raising the premium to 45.9 percent. Now the shareholders that have not yet made up their minds will have even strong incentives to accept the offer.”

In separate news, EQT announced that Harry Klagbrun will join the firm’s Stockholm office as a senior partner from October 2006. Klagsbrun, 51, has spent the past five years as executive vice president at North European financial group SEB and head of asset management within the SEB Group.

Previously, he was CEO at Alfred Berg from 1999 to 2000 and, before that, responsible for corporate financing at Handelsbanken from 1989 to 1995. Between 1981 and 1989, he worked at Smith Barney in New York.