AZN - Wall Street Breakfast Podcast: AstraZeneca To Buy Gracell Biotechnologies

2023-12-26 06:47:11 ET

Summary

• AstraZeneca to acquire China-based Gracell Biotechnologies for up to $1.2 billion.
• Manchester United sells 25% stake to billionaire Jim Ratcliffe for $1.3 billion.
• Nano Dimension submits all-cash proposal to buy Stratasys for $16.50 a share.

Listen below or on the go on Apple Podcasts and Spotify

AstraZeneca (AZN) to buy Gracell Biotechnologies (GRCL) for $1.2 billion. (00:22) Manchester United (MANU) agrees to sell 25% stake to billionaire Jim Ratcliffe for $1.3B. (01:46) Nano Dimension (NNDM) offers to buy Stratasys (SSYS) for $16.50 a share (update). (02:30)

This is an abridged transcript of the podcast.

AstraZeneca (NASDAQ: AZN ) announced on Tuesday that it has entered into a definitive agreement to acquire China-based Gracell Biotechnologies (NASDAQ: GRCL ) for up to $1.2 billion.

Per the terms, the company will acquire the fully diluted share capital of Gracell through a merger, with each share valued at $2.00. Additionally, the deal includes an unchangeable contingent value right of up to $0.30 per share in cash, which will be paid upon the achievement of specific regulatory and sales milestones.

AstraZeneca said in a statement, the upfront cash portion of the deal is $1.0 billion, a 62.0% premium to Gracell's last closing price for its American depositary shares of $6.19. Further, with the potential for additional contingent value payments, the total worth of the deal could reach $1.2 billion.

It will also acquire the cash, cash equivalents and short-term investments on Gracell's balance sheet, which totaled $234.1 million as of the end of September.

The companies said, pursuant to the deal, Gracell ( GRCL ) will operate as a wholly owned subsidiary of AstraZeneca ( AZN ), with operations in China and the U.S, without impacting AstraZeneca's financial guidance for 2023.

The transaction is expected to close in the first quarter of 2024.

Premarket Gracell is up 60%.

Famed soccer club Manchester United (NYSE: MANU ) agreed to sell a 25% stake to British billionaire Sir Jim Ratcliffe for $1.3 billion.

According to a statement on Sunday, Ratcliffe will pay $33 a share for the 25% stake. The sale values Manchester United ( MANU ) at about $5.4 billion, below what some thought could be a $6 billion valuation.

Ratcliffe will also provide an additional $300 million for future investment into the stadium where the team plays its home games.

Ineos will be given responsibility for the management of football operations. Ratcliffe is the Chairman of Ineos.

The deal is subject to all necessary regulatory approvals.

Nano Dimensions (NASDAQ: NNDM ) submitted an all-cash proposal to buy rival 3D printer maker Stratasys (NASDAQ: SSYS ) for $16.50 a share.

The preliminary proposal was made for all the remainder of Stratasys ( SSYS ) shares that Nano Dimension ( NNDM ) doesn't already own. The offer represents a 26% premium to Stratasys's closing price on Friday.

Nano Dimension ( NNDM ) is the largest shareholder of Stratasys ( SSYS ) with a 14% stake. The latest offer comes after Nano Dimension withdrew a $25 per share partial tender offer f or Stratasys after several rejections in late July.

Nano Dimension ( NNDM ) has a market cap of $564 million , while Stratasys ( SSYS ) is valued at $908 million.

On our catalyst watch for the day,

• The IPO lockup periods for blocks of shares of Savers Value Village ( SVV ), Kodiak Gas Services ( KGS ), and Fidelis Insurance ( FIHL ) expire.

Other articles to look out for on Seeking Alpha:

Airline profits set to take off in 2024

Intel's future may be turning around. One firm thinks it eventually splits up

Cannabis companies higher after Biden pardons thousands for marijuana offenses

U.S. stocks on Friday ended largely higher ahead of the extended Christmas weekend.

The Nasdaq ( COMP.IND ) added 0.19%, while the S&P 500 ( SP500 ) ended 0.17% higher. The Dow ( DJI ) fluctuated through the day, eventually concluding 0.05% lower.

All 11 S&P sectors ended in the green, led by Consumer Staples.

For the week, the Dow rose 0.22%, the S&P gained 0.75% and the Nasdaq climbed 1.21%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. The Dow is up 0.2%, the S & P 500 is up 0.2% and the Nasdaq is up 0.2%. Crude oil is down 0.02% at more than $73 per barrel. Bitcoin is down 1.4% and below $43,000.

In the world markets, major European markets remain closed today for a holiday including London, France and Germany.

The biggest movers for the day premarket: MBIA (NYSE: MBI ) is down 57% after giving up all earlier gains since a Wall Street analyst downgraded the stock to Neutral from Buy and gave it a $15.00 price target.

On today’s economic calendar:

• 9am FHFA house price index

• 1pm Money supply

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