The board of Relypsa Inc (NASDAQ:RLYP) agreed to sell the company for about $1.53 billion to a Swiss company called Galenica. The process of acquiring Relypsa through a tender offer has now begun. The board of Relypsa has recommended to shareholders of the company to tender their shares, because the transaction gives them value.

A 60% premium

Galenica is acquiring shares of Relypsa Inc at the price of $32 apiece, which indicates an almost 60% premium on the closing price of the stock just before the deal was made public.

Relypsa and Galenica announced their agreement to merge on July 20, with boards of both companies giving their blessings to the deal. Galenica is seeking to acquire 100% of Relypsa’s outstanding shares and the tender offer will run until August 31. But the tender period could be extended if there is a need for it.

Although Relypsa Inc has encouraged its shareholders to accept Galenica’s offer and tender their shares, it has not be made clear at this juncture what would happen if Galenica fails to get 100% of the shares tendered.

Galenica is carrying out the tendering process through its unit called Vifor Pharma USA Inc.

Pursuit of growth

According to Galenica, the reason it is seeking to acquire Relypsa is that it is after growth. Relypsa owns a drug for hyperkalemia called Veltassa and Galenica acquired global rights to the drug except in the U.S. and Japan.

Relypsa’s Veltassa, a treatment for a condition characterized by high levels of potassium in the blood, became the first new drug for hyperkalemia to be approved in nearly 50 years.

Hyperkalemia is said to affect more than 3 million people in the U.S. alone.

Other than the asset Veltassa, Galenica is also hoping to benefit from Relypsa’s sales and distribution network to broaden its play in the U.S.

Breakup after the deal

Galenica plans to split after it swallows RLYP. The plan is to combine Relypsa Inc with Vifor and then spin it off as an independent publicly traded company.