Neighbourly Pharmacy stock soars on go-private deal

Shares of Neighbourly Pharmacy (Neighbourly Pharmacy Stock Quote, Chart, News, Analysts, Financials, TSX:NBLY) are leading the TSX today after the company announced a go private deal with Toronto-based Persistence Capital Partners.

Neighbourly says the deal, which is priced at $20.50 and represents a 69 per cent premium to the October 2 closing price of $12.12, is a good one for shareholders. A company Transaction Committee approved the offer unanimously. The company said it expects to hold a special meeting of its shareholders to approve the deal, which it expects to close in late-2023 or early 2024.

“PCP believes that taking Neighbourly private is the best way to unlock its full potential and create long-term value for all stakeholders,” said said PCP managing partner Stuart M. Elman. “As a private company, Neighbourly will have more flexibility and resources to pursue its strategic vision to advance the role that independent pharmacies can play in Canada. We are confident that this proposed transaction will benefit Neighbourly’s customers, patients, employees, and partners, as well as provide a fair and attractive return to its public shareholders.”

Toronto-based Neighbourly owns Canada’s largest network of independent pharmacies.

At press time, shares of NBLY were up 57.8 per cent to $19.12.