- Silence Therapeutics (NASDAQ: SLN) is the subject of a $20.00 per share offer from Merck KGaA, aligning with a Jefferies price target.
- The proposed acquisition values Silence Therapeutics at $1.3 billion, leading to a significant surge in its stock price.
- A legal investigation is underway to assess the fairness of the $20.00 cash offer to Silence Therapeutics shareholders.
Silence Therapeutics (NASDAQ: SLN) is a U.K. biotech developing siRNA therapies. Jefferies sets a $20.00 price target while the shares trade at $19.58. That leaves about 2.2% between the share price and the target.
The target matches Merck KGaA’s proposed $20.00 cash payment for each Silence American depositary share (ADS). An ADS is a U.S.-traded certificate representing shares in a foreign company; each Silence ADS represents three ordinary shares. The deal would add Silence’s siRNA therapies to Merck’s rare-disease pipeline.
Merck’s offer values Silence at $1.3 billion, as highlighted by The Wall Street Journal. The $20.00 offer is more than double the ADS closing price on the preceding Friday. Silence now trades at $19.58, up $10.90, or 125.58%, bringing it close to both the offer price and Jefferies’ target.
Investor rights law firm Halper Sadeh LLC is investigating whether the proposed sale gives Silence shareholders a fair price. The narrow gap between Silence’s current price and the $20.00 cash offer makes that question relevant for holders, while the investigation itself does not establish that the price is unfair.
