bluebird bio, Inc. (NASDAQ: BLUE), currently trading at $4.47 and carrying a substantial debt burden of $370.53 million, has reaffirmed its Board of Directors’ unanimous recommendation for stockholders to accept the acquisition offer from Carlyle and SK Capital. The company’s current ratio of 0.48 indicates significant liquidity challenges, supporting the board’s urgency in securing this deal. The biotech firm reiterated its stance following a period of engagement with Ayrmid Ltd., which failed to present a binding proposal or secure the necessary financing to acquire bluebird.
On February 21, 2025, bluebird had entered into a definitive agreement with Carlyle and SK Capital for a buyout at $3.00 per share in cash, with an additional contingent value right of $6.84 per share upon reaching a sales milestone. This decision was made after a five-month strategic review, which involved discussions with over 100 potential investors and partners and a final denial by the FDA for a priority review voucher for bluebird.
Despite an extended timeline to submit a binding offer, Ayrmid did not fulfill this requirement nor did it secure the financing needed for its non-binding proposal of $4.50 per share upfront and the same contingent value right. In light of these developments, bluebird’s Board has emphasized the Carlyle and SK Capital agreement as the only viable solution to prevent defaulting on loan covenants and to deliver value for shareholders. There was negative EBITDA of $206.46 million in the last twelve months and rapidly diminishing cash reserves. Stockholders are advised to tender their shares by May 2, 2025.
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