In an exclusive interview with Thomas Warner (TW) of Proactive London, Dr Jonathan Milner (JM), the founder of life sciences company Abcam PLC (NASDAQ:ABCM), discusses why he believes the $24 per share acquisition offer from Danaher (NYSE:DHR) severely undervalues the company.
Milner criticises the timing of the deal and advises shareholders to consider whether the $5.7 billion acquisition is in their best interest.
TW: There's been a lot going on with Abcam. Could you get us up to speed with what's been happening and tell us about the campaign you've launched?
JM: Absolutely. I founded Abcam in 1998, and we had an amazing period of growth until 2020. I felt compelled to return and help the company get back on track. However, the board refused to reinstate me, leading me to call an AGM and initiate a strategic review. My fears were realised when Danaher (NYSE:DHR) made a subpar offer of $24 a share.
TW: Why do you believe that $24 per share undervalues Abcam?
JM: When I was CEO, Abcam traded at a 22 times EBITDA multiple. Danaher's offer is less than that, representing a negative premium for shareholders. Abcam is a prized life science asset in the UK, and it's a shame to see it being sold cheaply.
TW: You've also criticised the timing of this transaction. Could you elaborate?
JM: The timing is indeed poor. Life science company valuations are down, and the cost of capital is high. It raises questions about why the current board is in such a rush to sell the company, potentially benefiting personally at the expense of shareholders.
TW: What should investors be doing before the upcoming vote on the acquisition?
JM: Investors should gather as much information as possible and question the board and management. They should consider whether this is the best price and the right time to sell the company. Hopefully, they will conclude that it isn't and vote against the Danaher deal.
*Proactive asked Abcam for comment. The company has yet to reply to that request.