Revance Stockholders: Tender Your Shares by February 4th Deadline

As a value investor, I've been closely following the Revance Therapeutics, Inc. (NASDAQ: RVNC) acquisition saga, and I believe it's crucial for stockholders to make an informed decision before the February 4th deadline for Crown Laboratories, Inc.'s (Crown) tender offer. Here's a breakdown of the situation and why I believe tendering your shares by the deadline is a strategic move.



Background

Crown has made a cash tender offer to acquire all of the issued and outstanding shares of common stock, par value $0.001 per share ("Shares") of Revance, at a price of $3.65 per Share in cash, without interest and less any applicable tax withholding. This offer has been unanimously recommended by Revance's Board of Directors and is the only acquisition offer available to shareholders following Teoxane SA's withdrawal of its non-binding proposal and intention to tender its 6.2% stake in Revance into Crown's tender offer.

Why Tender Your Shares by February 4th Deadline?

1. Improved Offer Price: Crown's offer of $3.65 per share represents a significant increase from the previous offer of $3.10 per share, which was more than 50% lower than the original purchase price of $6.66 per share. This increase in offer price aligns with a value investor's focus on buying undervalued assets.
2. Deal Certainty: After a robust process, the Revance Board concluded that Crown's offer represents the best outcome for stockholders. This deal certainty is appealing to value investors who seek to minimize risk and maximize returns.
3. Withdrawal of Teoxane's Proposal: Teoxane's withdrawal of its non-binding proposal to acquire Revance and its intention to tender its 6.2% stake in Revance into Crown's tender offer removed a competing bid, making Crown's offer the only acquisition offer available to shareholders. This aligns with a value investor's focus on minimizing competition for undervalued assets.
4. Tender Offer Deadline: The tender offer expires at one minute past 11:59 p.m., Eastern Time, on February 4, 2025. This deadline creates a sense of urgency, encouraging stockholders to make a decision promptly.



Investment Strategy Implications

For Revance shareholders, the withdrawal of Teoxane's proposal and its intention to tender shares present two primary investment strategy options:

* Tender shares to Crown: Shareholders may choose to tender their shares to Crown, accepting the $3.65 per share offer. This provides a guaranteed return on their investment, albeit at a lower price than Teoxane's initial proposal.
* Hold shares and wait for potential developments: Shareholders may choose to hold onto their shares, hoping for a better offer or waiting to see how the acquisition progresses. This strategy carries more risk, as there is no guarantee that a better offer will materialize or that the acquisition will close as planned.

In conclusion, the February 4th deadline for the tender offer may influence the user's decision-making process regarding Revance stock by creating a sense of urgency, potentially increasing volatility, and encouraging them to assess the value of Crown's offer. However, the user's ultimate decision will depend on their personal investment goals and risk tolerance. As a value investor, I believe that tendering your shares by the February 4th deadline is a strategic move that aligns with a focus on buying undervalued assets, minimizing risk, and maximizing returns.