Public Takeover Offer by Novartis:
On February 5, 2024, MorphoSys entered into a Business Combination Agreement with Novartis BidCo AG (formerly known as Novartis data42 AG) and Novartis AG (hereinafter collectively referred to as “Novartis”) based on the intention of Novartis to submit a voluntary public takeover offer for all outstanding MorphoSys no-par value bearer shares. Novartis offered MorphoSys shareholders
€ 68.00 per share in cash, representing a total equity value of € 2.7 billion (the “Takeover Offer”).
On April 11, 2024, Novartis submitted its Takeover Offer to MorphoSys shareholders. The acceptance period of the Takeover Offer ended on May 13, 2024. The settlement of the shares tendered during the acceptance period and the change of control occurred on May 23, 2024. The statutory two-week additional acceptance period ended on May 30, 2024. The settlement of the shares tendered during the additional acceptance period occurred on June 10, 2024.
As of June 20, 2024, Novartis holds approximately 91.04% of the total MorphoSys share capital, including purchases by Novartis outside of the Takeover Offer. As a result, Novartis is the majority shareholder of MorphoSys, making MorphoSys a Novartis company.
Delisting Purchase Offer by Novartis:
On June 20, 2024, MorphoSys and Novartis signed a delisting agreement confirming that Novartis intends to launch a public delisting purchase offer (the “Delisting Offer”) for all outstanding MorphoSys no-par value bearer shares that are not presently held by Novartis. Novartis offers MorphoSys shareholders € 68.00 per share in cash, corresponding to its preceding Takeover Offer.
On July 4, 2024, Novartis published its Delisting Offer document following approval by the German Federal Financial Supervisory Authority (“BaFin”). With the publication of the offer document, the acceptance period has commenced and will expire on August 2, 2024, at 24:00 hours CEST and 18:00 hours EDT. The Novartis Delisting Offer document is available here.
The MorphoSys Management Board and Supervisory Board have published a joint reasoned statement unanimously recommending its shareholders to accept the Delisting Offer. The MorphoSys joint reasoned statement on the Delisting Offer is available here.
Now that the Novartis Delisting Offer document has been published, MorphoSys will apply for revocation of the admission to trading of MorphoSys shares on the regulated market of the Frankfurt Stock Exchange. On July 12, 2024, MorphoSys also formally notified Nasdaq of its intention to delist its American Depositary Shares (“ADSs”).
After the delisting becomes effective, MorphoSys shares and ADSs will no longer be traded on the regulated market of the Frankfurt Stock Exchange or on Nasdaq, and follow-up obligations from such a public listing will no longer apply. Additionally, following deregistration with the U.S. Securities and Exchange Commission (the "SEC"), MorphoSys will no longer be required to file reports with the SEC. The delisting from the Frankfurt Stock Exchange is expected to take place in August 2024. The last trading day of the ADSs on the Nasdaq is expected to be on or about August 2, 2024.
Merger Squeeze-out:
On June 20, 2024, Novartis BidCo Germany AG, an indirect 100% subsidiary of Novartis, also informed MorphoSys of their intention to merge MorphoSys into Novartis BidCo Germany AG. In this context, Novartis BidCo Germany AG has proposed entering negotiations with the MorphoSys Management Board regarding a merger agreement. The conclusion and notarization of the merger agreement between MorphoSys AG and Novartis BidCo Germany AG will take place soon.
As Novartis BidCo Germany AG holds approximately 91.04% and, after deduction of the number of treasury shares, approximately 91.17% of MorphoSys’ total share capital, Novartis BidCo Germany AG is able to facilitate a squeeze-out of MorphoSys’ minority shareholders in connection with the merger. To this end, on July 12, 2024, Novartis BidCo Germany AG submitted a specified request (konkretisiertes Verlangen) to the MorphoSys Management Board to convene the MorphoSys Annual General Meeting to resolve this topic. At the MorphoSys Annual General Meeting, expected to take place on August 27, 2024, a resolution will be adopted on transferring MorphoSys’ minority shareholder shares to Novartis BidCo Germany AG against a cash compensation of € 68.00 per share. The court-appointed expert auditor has confirmed the cash compensation to be adequate.
The merger squeeze-out will become effective once it has been approved by the MorphoSys Annual General Meeting, the transfer resolution and merger have been registered in the commercial register of MorphoSys AG, and the merger has been registered in the commercial register of Novartis BidCo Germany AG.
Public Communications:
- February 5, 2024, MorphoSys Ad-Hoc: MorphoSys AG Enters into Business Combination Agreement to be Acquired by Novartis for € 2.7 Billion Equity Value and into Purchase Agreement with Incyte for the Sale of Tafasitamab
- February 5, 2024, MorphoSys Press Release: MorphoSys Enters into Business Combination Agreement to be Acquired by Novartis for € 2.7 Billion Equity Value
- February 5, 2024, MorphoSys Investor & Analyst Presentation: MorphoSys to be Acquired by Novartis
- April 11, 2024, MorphoSys Press Release: MorphoSys’ Management Board and Supervisory Board Recommend Shareholders Accept Public Takeover Offer by Novartis
- April 11, 2024: Notice to the Bondholders (Publication of an Offer Document)
- April 11, 2024: Joint Reasoned Statement of the MorphoSys Management Board and Supervisory Board
- May 16, 2024, Novartis Press Release: Novartis meets all tender offer conditions to acquire MorphoSys AG for EUR 68 per share in cash
- May 16, 2024: Notice to the Bondholders (Acceptance Event)
- May 23, 2024: Notice to the Bondholders (Occurrence of an Acquisition of Control)
- June 20, 2024, MorphoSys Ad-Hoc: Novartis BidCo Germany AG Intends to Implement a Merger Squeeze-out of MorphoSys AG’s Minority Shareholders
- June 20, 2024, MorphoSys Press Release: MorphoSys and Novartis Sign Delisting Agreement and Intend to Implement a Merger Squeeze-out of MorphoSys’ Minority Shareholders
- June 20, 2024: Notice to the Bondholders (Occurence of an Acquisition of Control)
- July 4, 2024: Novartis Delisting Offer Document
- July 4, 2024: Joint Reasoned Statement of the MorphoSys Management Board and Supervisory Board on the Delisting Offer
- July 12, 2024, MorphoSys Ad-Hoc: Merger Squeeze-out Cash Compensation Determined at EUR 68.00
- July 12, 2024, MorphoSys Press Release: MorphoSys Announces Voluntary Delisting from the Nasdaq Global Market