In a turn of events that proves persistence can indeed pay off, Neighbourly Pharmacy is contemplating a return to private ownership.
Its largest shareholder, Persistence Capital Partners, has proposed to take the firm private at a price of $20.50 per share, valuing the business at just over $900 million.
Representing a 20% uplift for those who invested in Neighbourly Pharmacy's initial public offering (IPO) at $17.00 in 2021, the deal also provides a weighty 69% premium for those holding stock at Monday's closing price of $12.12.
The board of directors, with the exception of chair Stuart Elman who recused himself, is backing the approach.
Elman, also a managing partner at Persistence, stated that privatisation would grant Neighbourly greater flexibility and resources to advance its strategic vision in Canada's independent pharmacy sector.
Persistence Capital currently holds approximately 22.4 million shares or about 50.2% of Neighbourly Pharmacy.