Velan’s Controlling Stake Sold to Birch Hill in C$204 Million Deal

The latest update is out from Velan Inc. SV ( (TSE:VLN) ).

Velan Inc.’s controlling shareholder, Velan Holding Co. Ltd., has agreed to sell its entire 72.1% equity stake, representing roughly 92% of voting rights, to funds managed by Birch Hill Equity Partners for C$13.10 per share, valuing the block at approximately C$204 million. The transaction, structured via a pre-closing share reorganization and executed under a private agreement exemption to takeover bid rules, is expected to close in the first half of 2026 pending regulatory approvals, and does not require Velan shareholder or financing conditions. Birch Hill plans to maintain Velan’s head office and substantial operations in Quebec while leveraging its capital and operational expertise to support Velan’s next phase of domestic and international growth. A special committee of independent directors, advised by external legal and financial experts, oversaw a strategic review and concluded that cooperating with Birch Hill to facilitate the deal is in the company’s best interests, underscoring expectations that the new ownership structure will enhance Velan’s competitiveness and long-term value creation for stakeholders.

The most recent analyst rating on (TSE:VLN) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on Velan Inc. SV stock, see the TSE:VLN Stock Forecast page.

Spark’s Take on TSE:VLN Stock

According to Spark, TipRanks’ AI Analyst, TSE:VLN is a Neutral.

Velan Inc.’s stock score reflects significant financial challenges, particularly in cash flow and profitability, despite a stable balance sheet. Positive technical indicators and strategic progress in the nuclear sector provide some optimism, but valuation concerns due to negative earnings weigh heavily on the score.

To see Spark’s full report on TSE:VLN stock, click here.

More about Velan Inc. SV

Velan Inc., listed on the Toronto Stock Exchange, is a Montreal-based industrial manufacturer with a 75-year legacy of engineering and manufacturing expertise serving critical global industries. The company maintains a significant operational presence in Quebec and an international footprint, positioning itself as a key player in its sector with a focus on long-term growth and innovation.

Average Trading Volume: 7,745

Technical Sentiment Signal: Buy

Current Market Cap: C$403.7M

For an in-depth examination of VLN stock, go to TipRanks’ Overview page.