Covid tester buyout hands investors a bitter pill

Synlab AG

29/09/2023 11:16

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Aimee Donnellan
       LONDON, Sept 29 (Reuters Breakingviews) - Cinven is
buying back Synlab after floating it just two years ago.
Acquiring the German group at a 44% discount to its IPO price is
nice for the buyout shop, but hard for investors to swallow.
Either way, it reflects ebbing demand for health checks as
inflation soars.
    
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    CONTEXT NEWS
    Private equity firm Cinven has offered 10 euros a share to
take Covid-test maker Synlab private.
    The offer represents a 44% discount to Synlab’s initial
public offering price of 18 euros in 2021, at the peak of the
Covid-testing boom.
    Cinven, which controls 43% of Synlab, said shareholders
representing 29% of the equity capital had already committed to
accept its offer.
    Shares in Synlab were up 21.4% at 9.86 euros at 0945 GMT.

 (Editing by Lisa Jucca and Streisand Neto)
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