ILMN Illumina Inc

By Ben Glickman

Illumina has submitted paperwork for its potential divestiture of its subsidiary Grail, after being ordered by the European Commission to shed the recent acquisition.

The San Diego-based gene-sequencing equipment and services company said on Monday it had submitted a Form 10 draft registration statement to the Securities and Exchange Commission.

Illumina was ordered in October to unwind its $7.1 billion acquisition of Grail due to antitrust concerns from the European Commission.

The company said it maintains the European Commission doesn't have jurisdiction over the deal, and wouldn't divest Grail if its challenge to the order in court was successful.

Form 10 allows companies to register sales of securities. The company said the confidential submission was an "important next step in evaluating divestiture options" for Grail, which develops tests for cancer.

The company is allowed to explore multiple options for unwinding its acquisition, including a third-party sale or capital markets transaction.

This is just the latest development since Illumina reached an agreement to acquire Grail in 2020. Chief Executive Francis deSouza resigned in June after losing support from some board members amid regulatory challenges to the deal. It also prompted a proxy battle with activist investor Carl Icahn, who argued the company had cost shareholders billions by continuing with the acquisition.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

December 11, 2023 13:43 ET (18:43 GMT)

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