© Reuters.
By Svea Herbst-Bayliss
NEW YORK (Reuters) – Azenta on Monday introduced robust earnings in addition to adjustments to its board and stated that activist investor Politan Capital Administration, one of many biotechnology firm’s largest shareholders, won’t be pushing for seats this yr.
Azenta shares jumped practically 12% in after-hours buying and selling. The inventory closed the common session up 0.6% at $47.81.
Two new administrators will be a part of the board whereas two present administrators will retire, the corporate stated, including that it’ll make an extra $500 million in share repurchases in fiscal 2024 and can give attention to “smaller tuck-in acquisitions.” Income grew 25% within the fiscal fourth quarter, it added.
In return, Politan, which owned 7.5% of the corporate on Nov. 1, withdrew its discover to appoint director candidates for election, erasing fears that the hedge fund would possibly launch a proxy struggle this yr.
Azenta and Politan had been holding non-public discussions for weeks to search out methods of accelerating shareholder worth, individuals aware of the talks stated. Azenta’s inventory worth has tumbled practically 19% since January. In after-hours buying and selling the share worth climbed to $54.92 earlier than falling again to commerce at $49.80.
Earlier this month, Politan had nominated administrators to the board, taking a preliminary step to put the groundwork for a attainable proxy struggle. However on Monday, the corporate stated it has withdrawn its discover.
“We’re inspired by the Firm’s current operational efficiency, its dedication to elevated capital returns, its give attention to smaller tuck-in acquisitions, the CFO transition course of that led to the addition of Herman Cueto, and the adjustments the Firm is making to its Board,” stated Quentin Koffey, who launched Politan roughly two years in the past.
Beforehand, Politan pushed for adjustments at managed care firm Centene (NYSE:) and medical units maker Masimo (NASDAQ:).
