Egetis: Initial comment on acquisition discussions - Redeye

Yesterday, Egetis acknowledged that it has talks with certain external parties about a possible acquisition of the company, as reported by Bloomberg news a bit earlier. The article mentioned that Egetis has enlisted the help of an advisor to “gauge interest”. However, the extent of these discussions remains unclear and it is difficult to draw firm conclusions at this time. Egetis has been significantly undervalued for some time now and would present an attractive target for acquisition. For the acquisition bid to be approved, we anticipate the price offered to be considerably higher than the previous day's closing price (after a 40% rally), also given that the company and previous owners have the right to a priority review voucher worth in total USD100m, that can be sold, after the US approval. We will return with a more thorough take once we know more about the situation.