Nordic Capital and Permira remain firm on their €3bn all-cash take-private offer for Danish vaccine maker Bavarian Nordic A/S, setting the stage for a potential showdown with the company’s largest shareholder, according to a report by Bloomberg.
The consortium’s bid values Bavarian Nordic at DKK233 per share, a 21% premium to the pre-announcement price, and is positioned as a “full and fair offer” following an extensive due diligence process, said Florian Kreuzer, Permira Managing Director, in an interview.
The offer faces resistance from Denmark’s largest pension fund, ATP, which holds over 10% of the shares and argues the price undervalues the company’s growth prospects. ATP’s vice president Claus Berner Moller emphasised the fund’s commitment to Bavarian’s existing strategy, citing promising long-term outlooks.
Bavarian’s shares traded above the offer price at 238 kroner on Monday, reflecting market expectations of a potential higher bid. The stock has gained more than 28% over the past year.
Founded on a portfolio of travel vaccines, including recent launches against chikungunya and ongoing government partnerships for mpox and smallpox vaccines, Bavarian has been growing its footprint in the travel and endemic vaccine markets. Nordic Capital’s Christian Hedegaard underscored the PE firms’ plans for significant organic growth and M&A-driven consolidation.
Bavarian’s board backed the deal following “intense negotiations,” but the transaction requires acceptance by over 90% of shareholders to proceed. Chairman Luc Debruyne acknowledged ATP’s opposition and reiterated the board’s duty to pursue the best offer for all investors.
Market analysts remain divided. Sydbank’s Soren Lontoft Hansen described Bavarian as one of Denmark’s most misunderstood listed assets and questioned the offer’s attractiveness relative to analyst price targets, which range between DKK273 and DKK287. Conversely, Van Lanschot Kempen’s Romy O’Connor views the bid as fairly priced amid uncertainties in the critical US vaccine market, exacerbated by policy shifts under US Health Secretary Robert F Kennedy Jr.
