Investing.com -- Shares of Recordati (BIT:RECI) (BIT:REC (NSE:RECM)) tumbled 6% today following news that private equity owner CVC, through its holding company Rossini, initiated the sale of a 5% stake in the pharmaceutical company.
The stake sale, conducted via an accelerated bookbuild, was priced at €55.70 per share, representing a 7% discount to the current share price. The transaction is set to be finalized on February 21, 2025.
The sell-off was driven by CVC’s move to divest part of its holdings, which has been a looming concern for investors. Since acquiring the majority rights of Rossini from the Recordati family on June 26, 2018, CVC has seen Recordati’s shares climb by 76%, outperforming the broader sector.
The decision to sell follows a series of potential exit strategies explored by CVC, including interest from other private equity firms such as KKR and TPG, and a potential reverse merger with Angelini Pharma, which did not progress.
Barclays (LON:BARC) analysts commented on the situation, stating, "Reiterating our €50 PT on FY24 results and guidance, we see c-17% downside to shares trading at relative highs vs peers and own history, likely reflecting macro tailwinds."
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