Revance stock rises after entering talks with Teoxane on potential higher takeover offer

Investing.com -- Shares of Revance Therapeutics (NASDAQ:RVNC ) climbed 3% in pre-open trading Wednesday following news it will engage in discussions with Teoxane about a potential superior takeover proposal.

On January 6, 2025, Revance received a proposition from Teoxane to purchase all outstanding shares not already owned by Teoxane for $3.60 per share in cash. The offer, financed through a combination of cash, new minority equity, and debt, is subject to due diligence by Teoxane and its lenders. Teoxane's proposal provides a 16% premium over the $3.10 per share price in Revance's amended and restated merger agreement with Crown Laboratories.

The acquisition news came to light when Revance's Board of Directors received a letter from Crown commenting on the Teoxane Proposal, which was subsequently discussed in a board meeting on the morning of January 7, 2025. During this meeting, the board, aided by management and advisors from Skadden and Centerview, evaluated the proposal. Ultimately, the board unanimously concluded that the Teoxane Proposal could potentially lead to a Superior Proposal as defined in the A&R Merger Agreement.

Following the board's assessment, Revance informed the Crown of their intention to engage in discussions and negotiations with Teoxane. The company is prepared to provide Teoxane with information under an Acceptable Confidentiality Agreement according to the terms set in the A&R Merger Agreement.

The stock movement reflects investor optimism about the potential acquisition, which could represent a significant change in ownership and direction for Revance. The proposal suggests a strategic move by Teoxane to consolidate its position in the market by acquiring Revance, which could potentially benefit both companies if the deal proceeds.

As the situation develops, shareholders and potential investors will be closely monitoring the outcome of the negotiations and any subsequent impact on Revance's market position and financial performance.

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Source: Investing.com