A special committee of 23andMe’s board of directors said Friday it was “disappointed” in a proposal by CEO Anne Wojcicki to take the company private.
The committee, which is tasked with reviewing strategic alternatives for the DNA testing company, said Wojcicki’s proposal is “insufficient and not in the best interest of the non-affiliated shareholders.” The committee added that because the proposal provides no premium to 23andMe’s closing share price on Wednesday of 40 cents, it lacks committed financing and is conditional in nature.
“Therefore, we are not prepared to move forward under the terms provided,” the committee said in a statement. “Importantly, we request that you immediately withdraw your stated intent to oppose any alternative transaction so that we can fully assess whether there is interest from third parties in a transaction that would maximize value for all shareholders.”
Wojcicki first announced plans in April to take 23andMe private. The committee said that after months of work, it expected a fully financed, actionable proposal that is in shareholders’ best interests. The committee added that it would provide a “limited amount of additional time” for the CEO to submit a revised proposal that includes fully committed financing, including equity commitment letters.
In the meantime, the committee plans to work with a consultant on a revised business plan to provide 23andMe with a “path to a more sustainable financial profile and achieving profitability.”
Wojcicki filed a preliminary indication of interest to take the DNA testing company private earlier this week. 23andMe announced the proposal on Thursday.