PureTech Health PLC on Tuesday said it plans to return $100 million to shareholders with a tender offer, starting after it publishes its annual report in April.
PureTech Health’s stock was up 8.1% at 220.50 pence on late Tuesday morning in London.
The Boston, Massachusetts-based biotherapeutics company will repurchase the shares at 250p each, which it said is a premium of 25% to the stock’s trailing three-day volume-weighted average price.
The $100 million planned total represents around 14% of PureTech Health’s market capitalisation, which on Tuesday stood at £597.9 million in London and $683.2 million in New York.
PureTech added that if the full amount is not returned over the course of the tender offer, it will distribute the remainder by way of a special dividend.
‘We are delighted to be able to purchase shares of PureTech at this valuation and to concurrently provide some liquidity to our shareholders and additional capital returns,’ said Chief Executive Officer Daphne Zohar. ‘Following this proposed tender offer, we are confident that our strong balance sheet will continue to support the development of our existing pipeline - as well as the next wave of innovative medicines.
‘Looking forward, the board will continue to assess ongoing opportunities to improve shareholder returns.’
PureTech Health noted that the tender offer follows its recently completed $50 million share buyback programme, and its sale of Karuna Therapeutics to Bristol-Myers Squibb Co in late December for $14 billion or $330 per share.
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