Avid Bioservices(US:CDMO) Newsfilterยท2025-01-08 22:15Core Viewpoint - Avid Bioservices, Inc. is moving forward with a transaction involving GHO Capital Partners and Ampersand Capital Partners, which is expected to provide significant cash value to its stockholders and is set for a vote on January 30, 2025 [1][2][4]. Group 1: Transaction Details - The transaction offers a 63.8% premium to Avid's closing price on June 4, 2024, prior to the initial proposal from GHO and Ampersand [4]. - The implied multiples from the transaction exceed those of comparable publicly traded companies, indicating strong valuation [4]. - Avid's intrinsic value is assessed to have a 24.9% premium based on a discounted cash flow analysis aligned with management's five-year plan [4]. Group 2: Board Process and Recommendations - The Avid Board of Directors unanimously recommends that stockholders vote "FOR" the proposed transaction [3]. - The Board previously rejected two initial proposals from GHO and Ampersand before engaging in further discussions and outreach to other potential buyers [4]. - A competitive process was conducted, involving seven parties under NDA and resulting in two preliminary bids before final negotiations with GHO and Ampersand [4]. Group 3: Company Overview - Avid Bioservices specializes in biologics contract development and manufacturing, providing a range of services including CGMP clinical and commercial manufacturing [6]. - The company has over 30 years of experience in producing biologics and offers services from process development to full manufacturing programs [6].