EQT, a private equity company, has proposed to acquire 100% of Karo Pharma, a Swedish pharma company, it was reported yesterday.

The deal is valued at around SEK5.97bn.

According to the proposal, EQT VIII will acquire each of the shares of the pharma company for SEK36.90 in an all-cash deal. The offer from EQT implies a premium of around 25.3% compared to the closing price for the Karo Pharma share on Nasdaq Stockholm on the last day of trading prior to its issuance. The Karo board of directors has unanimously recommended the company's shareholders accept the offer made by the Swedish private equity firm through its EQT VIII fund.

The Swedish pharma firm's product portfolio includes over-the-counter and prescription pharmaceuticals in addition to medical devices. Included in the portfolio are Triolif, Vagisan, Locobase, Viruseptin, Allévo, Swereco and Dosett among others.