Stada’s 2017 takeover sparks fresh legal battles over shareholder compensation
A series of legal battles over Stada’s 2017 takeover continues as former shareholders push for extra compensation. The Higher Regional Court of Frankfurt (OLG) has now ruled on two key cases, dismissing one appeal while upholding claims for interest payments. Meanwhile, private equity firms Bain Capital and Cinven have exited their long-standing investment in the pharmaceutical company.
The OLG recently rejected an appeal by Nidda Healthcare, a shareholder that had challenged a Frankfurt Regional Court decision. The court found that Nidda’s claim had not expired, but it also ruled the company had acted in bad faith by raising the statute of limitations. According to the judgment, simply being aware of press reports did not meet the legal requirements for proving the claim’s validity.
In a separate ruling, the OLG confirmed that a shareholder was entitled to interest at 9 percentage points above the base rate. This applied regardless of whether the investor was a retail shareholder or held shares through a fund. The decision follows earlier rulings by the Federal Court of Justice (BGH) and the OLG, which had already supported former shareholders’ demands for additional compensation. One of the pending cases involves a Luxembourg-based asset manager seeking around €4.7 million. The firm argues it is owed the difference between the original takeover price of €66.25 per share and the guaranteed minimum compensation of €74.40 per share. Another individual shareholder is pursuing nearly €140,000 plus interest dating back to August 2017. In total, 44 similar cases remain before the OLG. The legal disputes come as Stada’s ownership shifts. Bain Capital and Cinven, which had held a stake since 2017, have now reduced their combined share to 31%. CapVest Partners has taken a 68% majority stake, with Stada’s management retaining the remaining 1%. The changes mark the end of Bain and Cinven’s eight-year involvement in the company.
The OLG’s latest decisions reinforce earlier judgments favouring former Stada shareholders. With 44 cases still unresolved, the court’s rulings on interest and compensation claims will likely shape future payouts. The ownership transition to CapVest Partners also signals a new phase for the pharmaceutical firm after years under Bain and Cinven’s control.
