Renalytix Share Price Soared 75% on an Unsolicited Takeover Offer

The Renalytix PLC (LON: RENX) share price soared 75% after announcing that it had received an unsolicited approach from a potential acquirer interested in purchasing all its outstanding shares. The company noted that the approach had made it consider its options and kickstart a formal sale process. 

The AI-powered in vitro diagnostics company focusing on enhancing kidney disease clinical management for better patient outcomes and promoting value-based healthcare has been approached unsolicited by a significant, publicly traded strategic diagnostics firm interested in acquiring all of Renalytix's issued and pending shares.

The approach has led Renalytix to evaluate all possible options, including the sale of the company and/or its assets. As part of this evaluation, Renalytix has started a formal sales process under the guidelines outlined in Note 2 on Rule 2.6 of the City Code on Takeovers and Mergers (Formal Sale Process). 

This process facilitates a structured and broad engagement with potential interested entities, aiming to maximise value for Renalytix's shareholders. Depending on the outcomes of this process, the company's board may consider other strategic alternatives that could include continuing as an independent company in the AIM and Nasdaq markets.

The Takeover Panel has allowed a waiver from specific Takeover Code requirements, enabling participants in the Formal Sale Process to remain anonymous and exempting them from a specific 28-day proposal submission deadline.

Interested entities are encouraged to contact Stifel to express interest or propose strategic options for Renalytix. Such parties must sign a non-disclosure and standstill agreement consistent with other interested entities before receiving detailed company information and submitting proposals.

Renalytix will keep the market updated on the Formal Sale Process's progress and reserves the right to modify or end the process at any time, making appropriate announcements as necessary.

In parallel with exploring strategic options, Renalytix's board is reviewing funding possibilities, including equity and debt financing, and engaging in advanced discussions with current shareholders and potential new financiers.

As of March 3, 2024, the company reported having $2.3 million in cash and approximately $1.4 million in marketable securities. Following a strategy to reduce operating costs initiated in the second fiscal quarter of 2024, the company aims to decrease its cash burn by about 33% from the previous quarter and 50% from the first quarter of fiscal 2024. 

Renalytix share price. 

The Renalytix share price soared 75% to trade at 70.0p, from Friday’s closing price of 40.0p.