It looks like BGI-Shenzhen may be close to unequivocally beating out fellow bidder Illumina (NASDAQ:ILMN) in securing a buyout of Complete Genomics (NASDAQ:GNOM). Last Friday, BGI-Shenzhen, a Chinese sequencing firm, announced that the company had again extended its tender offer for GNOM, this time by a single week, to January 18th. But more importantly, the company also revealed that, “. . . 29,336,700 shares, or approximately 83%, of common stock of Complete have been validly tendered in and not withdrawn from the Offer, including shares of common stock of Complete subject to guaranteed delivery procedures.” In addition, Complete Genomics and BGI have been announcing periodic regulatory clearances, beginning with the Committee on Foreign Investment in the United States (CFIUS) at the end of December, and early termination of the Hart-Scott-Rodino waiting period on Friday.
PropThink covered the story in November, suggesting that a position in GNOM offered upside potential if Illumina could impose itself on the tender process, and limited downside with the BGI deal as a backstop. And, here’s a full summary of the chronicle as of early December. While Complete Genomics’ sale is not yet fully finalized, the deal looks like it’s just a week from completion. Illumina has been at the center of a number of M&A goings-on, and it seems that it’s other “pending” deal with Roche (OTC:RHHBY) is also now out of the question. With the take-out speculation gone, ILMN shares will need to revert to fundamentals, and the stock already trades at a premium to its peers.