Prestige Brands tells Mexican suitor 'No mas'
IRVINGTON, N.Y. — Prestige Brands on Thursday reiterated its rebuke of a buyout offer from Mexican healthcare supplier Genomma Lab Internacional following Genomma's release of a proposal presentation.
"As we have previously stated and as we told Genomma and its advisers on April 5, should they make [a compelling] offer, there would be a basis to engage with them," Prestige stated. "However, Genomma's offer has not changed, and has already been unanimously rejected by the Prestige board as being inadequate and opportunistic. Aside from the offer not being compelling, Genomma has not provided any evidence that it has obtained financing commitments."
“Prestige is committed to maximizing stockholder value and would be open to compelling offers that provide certainty of closing," the company said. "We remain open to meeting with Genomma should they put forward a compelling offer.”
In the presentation dated April 26, Genomma is making an all-cash offer of $16.60 per share, valued at $856 million.
As of mid-day trading Friday, Prestige Brands shares were trading down some 20 cents for the day to $17.14 per share.
Citing those April 5 discussions with Prestige, Genomma suggested it would take its offer directly to Prestige shareholders. Genomma is targeting Prestige Brands' June 29 annual shareholder meeting to claim five Prestige directorships with Genomma nominees and vote to accept its $16.60-per-share acquisition offer.