22 January 2007 04:46 [Source: ICIS news]
SINGAPORE (ICIS news)--Merck KGaA would raise about €2bn ($2.6bn) by issuing new rights shares to refinance its purchase of Swiss biopharmaceuticals company, Serono, in September, the German chemical major said on Sunday.
The company will issue 13.3m shares at €78 each. Existing shareholders will be able to subscribe for 7.1m shares at a rate of four new shares for every 29 held, Merck said.
Majority shareholder, E Merck OHG, will have the right to subscribe for the remaining 6.2m shares, it added.
The price was €9.38 lower than its closing share price of €87.38 on Friday
The company will include 13.3m new shares in the quotation its existing shares on the Frankfurt Stock Exchange on 7 February 2007, it said.
A syndicate led by Deutsche Bank, Citigroup Global Markets and Goldman Sachs International has been appointed as underwriters for the issue.
Merck posted a 58% rise in fourth quarter operating profit on Thursday.
($1 = €0.77)
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