Shares in Arix Bioscience PLC (LSE:ARIX) surged higher after RTW Biotech Opportunities Ltd (LSE:RTWG) announced plans to acquire its assets.
The transaction arrives on the heels of a strategic review begun by Arix in July due to unfavourable market conditions.
The acquisition by RTW aims to create a pro-forma entity with a net asset value of approximately US$550 million – a rise of 63% on the current level.
This deal enhances RTW Bio's liquidity, efficiency, and re-rating potential while providing Arix shareholders with an implied premium of 46% on their shares. Additionally, the arrangement is expected to be immediately accretive to RTW Bio's net asset value per share upon completion.
The merger is to be executed via a scheme of reconstruction, subject to regulatory and shareholder approvals, uniting Arix's assets with RTW Bio's leading life sciences portfolio. The combined entity anticipates greater value creation opportunities, including potential growth in net asset value and improved market liquidity.
In a concurrent move, RTW Bio will also acquire a 25.5% stake in Arix from its largest shareholder, Acacia Research (NASDAQ:ACTG) Corporation, cementing the deal's momentum and setting the stage for a transformative 2024 for both companies.
Arix shares shot up 12% to 132p in early trades, but after just over an hour of trading had eased back to 120.04p, a gain of under 2% on the day but 10% higher than a year ago and up over 22% since the review was initiated in the summer.