Sagent Pharmaceuticals Inc (NASDAQ:SGNT) Investor Lawsuit Against Acquiistion By Nichi-Iko Pharmaceutical Co., Ltd Filed

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Company Name(s): 
Sagent Pharmaceuticals
Case Name: 
Sagent Pharmaceuticals Deal Case 08/12/2016
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: SGNT
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 
08/12/2016
Summary: 

August 15, 2016 (Shareholders Foundation) - An investor who currently holds shares of Sagent Pharmaceuticals Inc (NASDAQ:SGNT), filed a lawsuit in effort to halt the proposed takeover of Sagent Pharmaceuticals Inc by Nichi-Iko Pharmaceutical Co., Ltd.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:SGNT stockholders by agreeing to sell Sagent Pharmaceuticals. too cheaply via an unfair process to Nichi-Iko Pharmaceutical Co., Ltd.

On July 11, 2016, Nichi-Iko Pharmaceutical Co., Ltd and Sagent Pharmaceuticals Inc (NASDAQ:SGNT) announced that they have entered into a a merger agreement under which Nichi-Iko will acquire Sagent Pharmaceuticals Inc via an all-cash tender offer followed by a second-step merger, for a total consideration of approximately $736 million. The merger agreement contemplates an all cash tender offer for $21.75 per share, followed by a second-step merger in which all outstanding shares of Sagent Pharmaceuticals Inc common stock not tendered in the Tender Offer will be converted into the right to receive the same amount, in cash equal to the Tender Offer price.

However, plaintiff claims that the proposed consideration NASDAQ:SGNT shareholders will receive is grossly inadequate and undervalues Sagent Pharmaceuticals Inc. Indeed, at least one analyst has set the high target price for NASDAQ:SGNT shares at $25.00 per share and Sagent Pharmaceuticals shares reached in 2014 as high as $32.50 per share. In addition, the plaintiff alleges that the process is also unfair to NASDAQ:SGNT stockholder.