BB BIOTECH AG /
BB Biotech rejects proposal by Vontobel Group
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Response of the Board of Directors of BB Biotech to the proposal made by
Further to the press release published today by Vontobel Group, the Board of
Directors of BB Biotech AG (ticker symbol: BION) confirms that Vontobel Group
has made a proposal to restructure BB Biotech from its current status as a
listed investment company into an unlisted investment fund. The proposal is
unsolicited and has been published without consultation of BB Biotech. Based on
a detailed strategic review, the Board of Directors of BB Biotech has
unanimously concluded that such proposal is not in the best interest of the
company and its shareholders and, therefore, rejects the proposal of Vontobel
The Board of Directors notes that the share price of BB Biotech has seen a very
strong performance over the last twelve months (32.9% in CHF) during which
period it outperformed the broader Swiss market represented by the Swiss
Performance Index ("SPI") (3.0% in CHF). Based on the unaudited consolidated
results, after-tax profit for the first half of 2012 amounts to CHF 354 million.
This result is a reflection of the successful investment strategy of BB Biotech
AG and its consistent implementation.
Whilst the Board of Directors views the recent performance as an indicator of BB
Biotech's successful investment track record, it regularly evaluates strategic
alternatives with a view to a sustainable increase of value for the company and
its shareholders. Especially in the current highly volatile, rapidly changing
and challenging market environment, the Board of Directors attaches great
importance to continuously assess the implications of macro-economic factors
and, as required, adjust the corporate strategy accordingly.
In this light, the Board of Directors, with assistance of its independent
professional advisors, has engaged in a detailed review of all strategic options
available to BB Biotech. This strategic review also included, but was not
limited to, an in-depth analysis of the transaction proposed by Vontobel Group,
despite such proposal leaving a number of important regulatory and tax questions
unanswered and requiring approval by 2/3 of the votes in a shareholder meeting.
In the course of this strategic review, the Board of Directors concluded that BB
Biotech's corporate strategy of being a listed investment company is in the best
interest of the company and its shareholders over the mid to long-term.
Further details will be provided as part of the half year results announcement
on July 19, 2012. In the meantime, the Board of Directors recommends to the
shareholders of BB Biotech AG to not take any action.
Urs Knapp, Spokesperson of the Board of Directors of BB Biotech AG
+41 44 266 67 67, firstname.lastname@example.org
BB Biotech invests in companies in the fast growing market of biotechnology and
is one of the world's largest investors in this sector with around CHF 1.2 bn in
assets under management. BB Biotech is listed in Switzerland, Germany and Italy.
Its investments are focused on listed companies that are developing and
commercializing novel medical treatments and cures. BB Biotech's investment
selection process is guided by the fundamental research and analysis of
physicians and molecular biologists. Its Board of Directors has many years of
experience in industry and science.
BB Biotech Press Release (PDF):
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Source: BB BIOTECH AG via Thomson Reuters ONE
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BB BIOTECH AG
Vordergasse 3 Schaffhausen Switzerland
WKN: AONFN3;ISIN: CH0038389992;
(END) Dow Jones Newswires
July 13, 2012 03:02 ET (07:02 GMT)- - 03 02 AM EDT 07-13-12