Bluebird Private Equity Buyout Boosts Upfront Cash for Shareholders

Bluebird bio, a gene therapy company, has amended its buyout agreement with Carlyle and SK Capital Partners to enhance upfront cash options for shareholders53.

The revised offer now allows shareholders to choose between two options:
$5.00 per share in immediate cash or $3.00 per share plus a contingent value right (CVR) of $6.84 per share, payable upon meeting future sale milestones5.

This amendment followed previous shareholder reluctance and a rival offer by Ayrmid for $4.50 per share in cash42.

The buyout comes at a time when Bluebird faces significant financial pressures, including $370 million in debt and a high risk of loan default that could lead to bankruptcy54.

Bluebird's board unanimously approved the revised agreement and strongly urges shareholders to tender their shares, emphasizing that without this buyout, shareholders are unlikely to recover any value in case of bankruptcy or liquidation54.

Sources:

2. https://firstwordpharma.com/story/5960896

3. https://www.proactiveinvestors.com/companies/news/1071231/bluebird-bio-shares-soar-after-amended-buyout-offer-from-carlyle-sk-capital-1071231.html

4. https://www.fiercepharma.com/pharma/bluebird-bio-investors-reluctance-pays-carlyle-sk-improve-buyout-offer-67

5. https://www.investing.com/news/company-news/bluebird-bio-updates-terms-of-carlyle-sk-capital-buyout-93CH-4044936