23andMe Announces CEO’s Take-Private Proposal
23andMe Holding Co. (Nasdaq: ME) has received a take-private proposal from its CEO, Anne Wojcicki. The offer, announced on July 31, 2024, proposes to acquire all outstanding shares not owned by Wojcicki or her affiliates for $0.40 per share in cash. This applies to both Class A and Class B Common Stock. The company's Special Committee is carefully reviewing the proposal, with Wells Fargo as financial advisor and Dechert LLP as legal counsel. The committee emphasizes its commitment to acting in the best interests of 23andMe and its shareholders. However, there is no guarantee of any specific outcome from this proposal.
23andMe Holding Co. (Nasdaq: ME) ha ricevuto una proposta di acquisizione dal suo CEO, Anne Wojcicki. L'offerta, annunciata il 31 luglio 2024, prevede l'acquisto di tutte le azioni in circolazione non possedute da Wojcicki o dai suoi affiliati per $0,40 per azione in contanti. Questo si applica sia alle azioni di Classe A che di Classe B. Il comitato speciale dell'azienda sta esaminando attentamente la proposta, con Wells Fargo in qualità di advisor finanziario e Dechert LLP come consulente legale. Il comitato sottolinea il suo impegno a operare nel migliore interesse di 23andMe e dei suoi azionisti. Tuttavia, non c'è nessuna garanzia di un esito specifico da questa proposta.
23andMe Holding Co. (Nasdaq: ME) ha recibido una propuesta de privatización de su CEO, Anne Wojcicki. La oferta, anunciada el 31 de julio de 2024, propone adquirir todas las acciones en circulación no poseídas por Wojcicki o sus afiliados por $0.40 por acción en efectivo. Esto se aplica tanto a las acciones de Clase A como de Clase B. El Comité Especial de la empresa está revisando cuidadosamente la propuesta, con Wells Fargo como asesor financiero y Dechert LLP como asesor legal. El comité enfatiza su compromiso de actuar en el mejor interés de 23andMe y sus accionistas. Sin embargo, no hay garantía de ningún resultado específico de esta propuesta.
23andMe Holding Co. (Nasdaq: ME)는 CEO인 Anne Wojcicki로부터 사모 제안을 받았습니다. 2024년 7월 31일에 발표된 이 제안은 Wojcicki 또는 그녀의 계열사가 소유하지 않은 모든 발행 주식을 주당 $0.40에 현금으로 매수하겠다는 것입니다. 이는 클래스 A와 클래스 B 보통주 모두에 해당합니다. 회사의 특별 위원회는 제안을 신중히 검토 중이며, Wells Fargo가 재무 자문사, Dechert LLP가 법률 자문사로 활동하고 있습니다. 위원회는 23andMe와 그 주주의 최대 이익을 위해 행동하겠다는 의지를 강조합니다. 그러나 이 제안에서 특정 결과가 보장되지는 않습니다.
23andMe Holding Co. (Nasdaq: ME) a reçu une proposition de privatisation de son PDG, Anne Wojcicki. L'offre, annoncée le 31 juillet 2024, propose d'acquérir toutes les actions en circulation non détenues par Wojcicki ou ses affiliés pour 0,40 $ par action en espèces. Cela s'applique aux actions de catégorie A et B. Le comité spécial de l'entreprise examine attentivement la proposition, avec Wells Fargo comme conseiller financier et Dechert LLP comme conseiller juridique. Le comité souligne son engagement à agir dans le meilleur intérêt de 23andMe et de ses actionnaires. Cependant, il n'y a aucune garantie d'un résultat spécifique de cette proposition.
23andMe Holding Co. (Nasdaq: ME) hat ein Privatisierungsangebot von ihrer CEO, Anne Wojcicki, erhalten. Das am 31. Juli 2024 angekündigte Angebot sieht vor, alle ausstehenden Aktien, die nicht im Besitz von Wojcicki oder ihren Tochtergesellschaften sind, für 0,40 $ pro Aktie in bar zu erwerben. Dies gilt sowohl für die Klasse A als auch für die Klasse B Stammaktien. Der Sonderausschuss des Unternehmens prüft das Angebot sorgfältig, wobei Wells Fargo als Finanzberater und Dechert LLP als rechtlicher Berater fungiert. Der Ausschuss betont sein Engagement, im besten Interesse von 23andMe und dessen Aktionären zu handeln. Es gibt jedoch keine Garantie für ein bestimmtes Ergebnis aus diesem Vorschlag.
- Potential for shareholders to receive cash for their shares
- CEO's confidence in the company's value and future prospects
- Low offer price of $0.40 per share may undervalue the company
- Potential loss of public trading status and reduced liquidity for shareholders
- Possible conflicts of interest with CEO leading the buyout
Insights
Anne Wojcicki's proposal to take 23andMe private at
The proposed privatization could be seen as a strategic move to restructure the company away from public market pressures. 23andMe has faced challenges in recent years, including declining consumer genetic testing sales and difficulties in monetizing its vast genetic database. Going private could allow for more flexibility in long-term strategic planning and investment without the constant scrutiny of quarterly earnings reports.
However, minority shareholders should carefully consider whether this offer truly reflects the company's potential value, especially given its extensive genetic database and ongoing pharmaceutical research partnerships. The
It's also worth noting that this move could be interpreted as a vote of confidence from the CEO in the company's long-term prospects, despite current market challenges. Investors should watch closely for any counter-offers or negotiations that might emerge, as well as the Special Committee's evaluation of the proposal.
The announcement of CEO Anne Wojcicki's take-private proposal raises several important legal considerations. First and foremost, the formation of a Special Committee by the Board of Directors is a important step in ensuring that the interests of minority shareholders are protected. This committee, along with its engaged financial and legal advisors, will be responsible for thoroughly evaluating the proposal and negotiating on behalf of the shareholders.
Given Ms. Wojcicki's position as CEO, Co-Founder and Chair of the Board, there are inherent conflicts of interest that must be carefully managed. The Special Committee will need to ensure that the process is fair and transparent and that all shareholders are treated equitably. This includes a thorough evaluation of the company's value and potential alternatives to the proposed transaction.
The
Additionally, the SEC filing of a Schedule 13D indicates that Ms. Wojcicki may be working with other large shareholders. The terms of any potential 'rollover' agreements with these shareholders will be of particular interest, as they could impact the overall fairness of the deal to minority shareholders.
Investors should expect a thorough review process and potentially further negotiations before any definitive agreement is reached. The outcome is far from certain at this stage and shareholders should stay informed of developments as the process unfolds.
The proposed privatization of 23andMe by CEO Anne Wojcicki signals a potential shift in the consumer genetics industry. This move comes at a time when the direct-to-consumer genetic testing market has been experiencing a slowdown, with privacy concerns and market saturation being key factors.
23andMe's struggles are not unique in this space. Competitors like Ancestry.com have also faced challenges, with Blackstone taking Ancestry private in 2020 for
The
Looking ahead, the privatization could allow 23andMe to focus on its transition from a consumer genetics company to a more research-oriented and pharmaceutical-focused entity. The company's vast genetic database, with over 13 million customers, remains a valuable asset that could be leveraged more effectively in a private setting.
This move may also signal a broader trend in the biotech industry, where companies with long-term research goals find it challenging to meet the short-term expectations of public markets. Investors should watch for similar moves in related sectors, as this could indicate a shift in how genetic and biotech companies structure themselves for future growth and innovation.
SOUTH SAN FRANCISCO, Calif., Aug. 01, 2024 (GLOBE NEWSWIRE) -- 23andMe Holding Co. (Nasdaq: ME), a leading human genetics and biopharmaceutical company, has received a preliminary non-binding indication of interest from Anne Wojcicki, Chief Executive Officer, Co-Founder, and Chair of the Board of Directors of 23andMe, to acquire all of the outstanding shares of 23andMe not owned by her or her affiliates or any other stockholder that she invites to roll over their shares for cash consideration of
The Special Committee previously formed by the Board of Directors of 23andMe is carefully reviewing and evaluating the Proposal and is committed to acting in the best interests of 23andMe and its shareholders.
There can be no assurance that the foregoing will result in any particular outcome.
The Special Committee has engaged Wells Fargo as its financial advisor and Dechert LLP as its legal advisor.
About 23andMe
23andMe is a genetics-led consumer healthcare and biopharmaceutical company empowering a healthier future. For more information, please visit www.23andMe.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding 23andMe’s strategy, are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," “predicts,” "continue," "will," “schedule,” and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The statements made herein are made as of the date of this press release and, except as may be required by law, 23andMe undertakes no obligation to update them, whether as a result of new information, developments, or otherwise.
Contact: press@23andme.com
FAQ
What is the cash offer per share in 23andMe's (ME) take-private proposal?
Who made the take-private proposal for 23andMe (ME) on July 31, 2024?
Has 23andMe (ME) accepted the take-private proposal as of August 1, 2024?
Which advisors has 23andMe (ME) engaged to evaluate the take-private proposal?
