UK health robot SPAC is punt on big pharma buyout

BenevolentAI SA

06/12/2021 11:23

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Aimee Donnellan
    LONDON, Dec 6 (Reuters Breakingviews) - The Zaoui
brothers are merging their blank-cheque firm with BenevolentAI,
which uses tech to discover new drugs. A $440 mln cash infusion
will keep computers whirring, but revenue remains distant.
Investors including AstraZeneca and Sanofi’s former CEO hint at
a future takeover.    
    Full view will be published shortly.
    Follow @aimeedonnellan https://twitter.com/aimeedonnellan on
Twitter
    
    CONTEXT NEWS
    - British healthcare technology firm BenevolentAI said on
Dec. 6 it will merge with Odyssey Acquisition, an
Amsterdam-listed special-purpose acquisition company founded by
investment bankers Yoel and Michael Zaoui. BenevolentAI uses
artificial intelligence technology to accelerate drug discovery.
    - The deal values BenevolentAI at 1.1 billion euros, not
including cash raised from the transaction. Investors including
Singaporean wealth fund Temasek, pharmaceutical giant
AstraZeneca and healthcare expert group Ally Bridge have
committed to inject 135 million euros in a private placement,
while Odyssey will bring 300 million euros of cash. In total,
the deal is expected to inject 390 million euros in cash, after
deducting fees, and assuming none of the existing investors in
the SPAC withdraw their money. BenevolentAI plans to use the
funds to invest in its technology platform and scale up its
clinical pipeline.
    - Olivier Brandicourt, former chief executive of Sanofi, and
Jean Raby, former CEO of Natixis Investment Managers, will join
the BenevolentAI board upon completion. The deal marks the
largest European SPAC merger to date.
    - Odyssey shares were trading at 9.99 euros, up 2.2%, by
0950 GMT on Dec. 6.

 (Editing by Peter Thal Larsen and Karen Kwok)
 ((For previous columns by the author, Reuters customers can
click on  DONNELLAN/ 
SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS https://bit.ly/BVsubscribe
 | Aimee.Donnellan@thomsonreuters.com; Reuters Messaging:
Aimee.Donnellan.thomsonreuters.com@reuters.net))