EQT and Investor raise offer for Gambro

The cash tender offer for Gambro, the listed Swedish medical technology company, has been raised by SKr1.4bn to a total of SKr39.6bn (US$5.4bn). The bidding vehicle is Indap, which is indirectly owned by buyout firms EQT (51%) and Investor (49%).

Indap increased the offer to Gambro shareholders to SKr113.70 per series A and B share from SKr109.70. The new offer represents a premium of 35.7% to the average share price for the three months to March 31 2006, or 45.9% on a cash free basis.

The acceptance period has also been extended from May 10 to May 31. The offer is based on more than 90% of the total number of shares in Gambro being tendered, among other conditions.

Investor is currently the largest owner in Gambro, with 19.9% of the shares and 26.3% of the voting rights at the time of the announcement of the offer.

By the end of the initial acceptance period on May 10, Gambro shares had been tendered into the offer, together with the stake currently held by Investor, corresponding to 44% of the share capital and 47.3% of the voting rights.

Carnegie Investment Bank and Lazard Freres & Co have delivered fairness opinions to the board of Gambro to the effect that the offer is fair, from a financial point of view, to the shareholders of Gambro.

SEB Enskilda and Goldman Sachs International are acting as financial advisers to Indap and Morgan Stanley is acting as financial adviser to Investor in connection with the offer.

“The revised offer represents an increase of about SKr1.4bn, which is a substantial improvement, raising the premium to 45.9%,” said Thomas von Koch, senior partner at EQT Partners and Lennart Johansson, managing director at Investor, in a joint statement. “Now the shareholders that have not yet made up their minds will have even stronger incentives to accept the offer.”