Jonathan Milner ends bid to become executive chairman of Abcam plc – for now

After weeks of unprecedented manoeuvering and corporate activity on a scale not seen in Cambridge since Nvidia’s attempt to swallow Arm, Jonathan Milner today (June 27) suspended his bid to become executive chairman at Abcam plc.

The drama began on May 30 when Dr Milner, the founder and 6.3 per cent shareholder of Abcam plc, announced his exasperation with the direction the esteemed life sciences company was heading in and announced his intention to stand for executive chairman. An EGM was scheduled for July 12.

Less than a month later, Dr Milner has pulled out “for the time being”, claiming a victory of sorts because the battle has raised the company’s share price.

In his statement last week, Dr Milner appeared to dismiss talk of a sale, but this week’s statement suggests his view has now changed.

Dr Milner’s statement to shareholders of the company says: “In light of reports that the company has received credible inbound M&A interest, and the company’s announcement that the board is pursuing these strategic alternatives, I have decided to suspend my solicitation for the time being to allow the board to focus on pursuing its strategic review and thereby create maximum shareholder value.

“I remain willing to join the board immediately, either as executive chairman, chairman or a non-executive director, if invited to assist and support it in the strategic review process to obtain a full and fair price, but will not agree to any standstill restrictions that would impair my ability to hold the board accountable by calling for another EGM or nominating directors at the next AGM. I will re-assess this autumn whether it is necessary to call for another EGM.

“Since launching my campaign, the company’s stock price has increased ca. 45 per cent, adding approximately $1.6bn of total market value to Abcam. I appreciate the feedback of many shareholders who have credited my efforts with an improved outlook for the company and its business. If the board fails to deliver on the company’s promise, we will hold it accountable.”

The EGM on July 12 will go ahead, but “will be called to order and then adjourned without any action taken”, according to a spokesperson for Dr Milner’s team.

It was not clear at the time of going to press whether Dr Milner will resume his other investment and funding activities, or whether he will continue to devote his full attention to the next stage of the Abcam story. If nothing else, the boost in the share price will be an agreeable fillip to conclude what has been an engaging, occasionally combative, always fascinating battle of wills.

Meanwhile Abcam – also today – issued its FY2024 guidance, which reiterated FY2023 guidance of “reported revenue of approximately £420m to £440m, representing 15% to 20% constant exchange rate revenue growth and expected adjusted operating profit margin of between 27% to 28%, with expected adjusted EBITDA margins of 36.5% to 37%”. Further progress is expected into FY2024, with revenue expecte to rise to “approximately £475m to £525m, representing 11.3% to 13.4% CER revenue CAGR2 and 10.0% to 12.1% organic revenue CAGR3 from FY2019”.

And so it is that Abcam’s purpose – “to serve life science researchers globally to achieve their mission faster” – continues.