A second buyer has made an offer to buy the DNA sequencing company Singular Genomics Systems, potentially complicating an offer made last week by the investor Deerfield Management.
On Wednesday, Tang Capital’s Concentra Biosciences offered to buy all outstanding shares of Singular for $12 a share. That’s $2 a share more than the $10 a share Deerfield offered the company last week.
Both already own substantial stakes in Singular, one of several upstarts taking on DNA sequencing giant Illumina. Funds and individuals associated with Deerfield control roughly 27% percent of Singular’s shares. Concentra owns 14.9% of the stock.
Tang uses Concentra as an acquisition vehicle, and over the years has targeted many life sciences companies for takeovers. Tang, as well as representatives for Singular and Deerfield, didn’t respond to requests for comment.
Investors appear to be betting that an improved deal could be in the making. The stock $OMIC closed Wednesday at $16.79, well above either offer.
Alternatively, Tang Capital offered a tradable security known as a contingent value right, or CVR, when the deal closes.
“In this scenario, following the transaction, the company would continue as a privately held entity, and its management team would be able to operate the business without the expenses, disclosure obligations and other burdens associated with being a publicly traded company,” Tang wrote in the letter.
Tang Capital said it is seeking an answer from Singular by Sept. 23.