Bionomics chief executive Dr Deborah Rathjen. Source: AdelaideNow
ADELAIDE drug development company Bionomics has been put into takeover play by its biggest shareholder.
Venture capital company Start-up Australia announced last night it was inviting bids for its 27.76 per cent stake in Bionomics.
"The successful tenderer must subsequently make a takeover bid for all the ordinary shares in Bionomics," Start-up said in a statement to the stock exchange after the market closed.
Managing director of Start-up George Jessup said Bionomics had made great progress in advancing its drugs for cancer, anxiety and multiple sclerosis.
"The market has not rewarded the company for the progress it has made," he said.
"We believe the broader international market will value the company more highly and our intention in inviting tenders is to obtain a value for all shareholders that reflects the value of the company's assets."
Bionomics has a market capitalisation of about $100 million.
Below Start-up on the share register are Link Traders with a 9.9 per cent stake and the Australian National University investment arm at 7.4 per cent.
No other shareholders held more than 5 per cent as at October 31.
Managing director Deborah Rathjen said prior to the ASX announcement last night the board had not been aware of Start-up's intention to sell.
"The board is currently discussing the process and we are working on a response," Ms Rathjen said.
She expected the board would make an announcement to the market today.
Bionomics shares spiked up 14.6 per cent yesterday to 31.5c but Ms Rathjen attributed this to the success of trials and recent media coverage not the Start-up move.
Start-up has appointed investment bankers Ferghana Partners, based in New York and London, to assist its sale process.
Start-up said tenders would be accepted until March 31 next year but reserved the right to amend its timetable.
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