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Meda launches rights issue to help pay for Rottapharm

As part of the financing of the acquisition of Rottapharm, Meda’s Board of Directors has resolved to launch a rights issue of approximately SEK 2.0 billion.

On 31 July 2014, Meda announced entering into an agreement to acquire the Italian specialty pharma company Rottapharm S.p.A. Completion of the transaction was subject to certain conditions, including clearance from a number of competition authorities.

All necessary approvals have now been obtained and the acquisition of Rottapharm has thus been completed announces Meda, and Rottapharm is now a wholly owned subsidiary of Meda. The agreed purchase price amounted to SEK 21.2 billion (EUR 2.275 billion) on a debt free basis, and consisted of SEK 15.3 billion (EUR 1.643 billion) in cash, 30 million Meda shares at a value, at the time of entering into the agreement, equivalent to SEK 3.3 billion and an unconditional deferred payment of SEK 2.6 billion (EUR 0.275 billion) which will be settled in January 2017.

Meda’s Annual General Meeting 2014 resolved to authorise the Board of Directors until the next Annual General Meeting to, on one or more occasions, decide to increase the share capital by issuing new shares of Class A and/or Class B. The authorisation included a maximum of 30,224,306 shares. In connection with the acquisition of Rottapharm, the Board of Directors has decided to use the authorisation to pay part of the agreed purchase price by way of issuing 30,000,000 Class A shares for the benefit of Rottapharm’s previous owner, Fidim S.r.l.

The Board of Directors in Meda has further, subject to the approval of the Extraordinary General Meeting, decided to launch a rights issue of Class A shares of approximately SEK 2.0 billion with preferential rights for Meda’s shareholders.


Source: Meda