(Sierra Oncology) Shares of Sierra Oncology rose more than 36% in premarket on Wednesday after agreeing to be acquired by Sierra Oncology for $1.9 billion.
The deal will see Sierra Oncology receive $55 per share in cash for all shares outstanding, representing about a 39% premium to the closing price on April 12, 2022. The closing is also a 63% premium to Sierra’s volume-weighted average price over the last 30 trading days.
Sierra’s board has unanimously approved the merger. The company’s stockholders with stakes of about 28% of outstanding shares have agreed to vote in favor of the merger.
The merger is expected to be accretive to the adjusted EPS of GSK in 2024. Sales contribution is expected to start in 2023, with significant increases thereafter.
SRRA: NASDAQ is up +36.26% on premarket, GSK: NYSE is up +0.84% on premarket.
