IMVT stock: March 8 2021 | 44% Intraday increase | update

 

The stock price of Immunovant Inc (NASDAQ: IMVT) increased by over 44% during intraday trading as it went from a previous close of $13.51 to a day high of $19.46. Investors were responding to a report about the company’s majority holder Roivant saying that it is evaluating a buyout.

Roivant Sciences owns 57.5% of Immunovant’s outstanding shares. And the company is planning to make a proposal to the company of a potential transaction in which Roivant or an affiliate would buy all of the issued and outstanding shares that are not currently owned by them.

Roivant is expecting that a potential transaction would be at a per share price representing a premium to current trading levels “consistent with similar precedent transactions in the life sciences industry involving acquisitions of minority interests by majority shareholders” with the mix of cash or equity consideration to be mutually determined.

And Roivant is evaluating a potential public listing that would take effect prior to the consummation of any transaction. As Immunovant’s controlling shareholder, Roivant disclosed that it received nonpublic information about the company and its lead product candidate. 

Roivant hired Goldman Sachs, JPMorgan and SVB Leerink to serve as its financial advisors in connection with the evaluation of a potential transaction. 

Actionable Items

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