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Enzon concludes review of possible asset sale, sale of company, announces special dividend

Enzon Pharmaceuticals announced that it has concluded a thorough review of the possible sale or disposition of one or more corporate assets, or a sale of the company, and that its board has approved a $1.60 special dividend per share and intends to distribute excess cash, expected to arise from ongoing royalty revenues, in the form of periodic dividends to shareholders. The record date of the special dividend will be May 7, and the payment date will be June 4. Furthermore, the company has minimized expenses and will look to maximize the return of royalty revenues to shareholders going forward. As of March 31, the company had cash, cash equivalents and marketable securities totaling $199.3M and approximately $116M in outstanding 4% convertible notes, which mature on June 1. The special dividend announced would result in an aggregate distribution to shareholders of approximately $70M. Alex Denner, chairman of the board, commented: "The recall of Omontys from the market and recent declines in Pegintron revenues adversely impacted interest in a possible acquisition of the company's royalty portfolio, leading the board to conclude that a distribution of Enzon's cash and ongoing royalty revenues was in the best interest of Enzon's shareholders. This direction, which followed an exhaustive review of alternatives, returns what the board believes is the greatest value to shareholders."