Alliance Pharma PLC (AIM:APH) is being taken private by its biggest shareholder in a deal that values the business at just under £362 million.
Isle of Man-based DBAY Advisors, which owns 27% of the speciality drugmaker, has increased its initial bid by 2.25p to 64.75p a share - a deal recommended by Alliance's board.
That's a 41% premium to the share price on January 9, the day before the first bid was tabled and 121% higher than when DBAY first registered an interest in the business in May last year.
Alliance's decision to depart AIM follows the extraordinary exodus of companies from the junior market in 2024, with bosses citing waning access to growth capital, low valuations and poor liquidity for the trend.
In Alliance's case, funding was put forward as a major driver for the take-private deal.
A previous announcement told investors: "Acquisitions have also been an important part of Alliance's development and the current restrictive funding environment, leverage levels and a number of operational challenges have meant that Alliance has not been able to pursue acquisition opportunities over the past 24 months."
The lowly valuation of the stock has prevented the group from raising cash through share placings, essentially putting on hold its buy-and-build strategy.
"The Alliance board believes that access to private capital and DBAY's support will allow it to return to its buy-and-build strategy more quickly than if it remained on the public market," the company said in January.