Merck KGaA to raise €2bn via rights issue

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)

By: Keith Tan Liming
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly