Siemens Healthineers raises 2.73 billion euro from share sale to fund Varian deal

Industry:    2020-09-04

Siemens Healthineers said on Wednesday it issued 2.73 billion euros ($3.22 billion) worth of new shares to help finance its planned takeover of U.S. peer Varian.

The firm said in a statement it had issued the shares at 36.40 euros each. The total amount raised excludes any deduction in commissions and expenses.

The German healthcare group last month agreed to buy Varian in a $16.4 billion deal, seeking to create a global leader in cancer diagnostics and radiotherapy.

Sources told Reuters at the time that Healthineers was preparing a two-step capital increase to raise a combined 7.5 billion euros via share placements.

The company said on Wednesday that the transaction, an accelerated bookbuilding process for institutional investors, will increase Healthineers’ share capital by up to 7.5%, within the limits of what has been pre-authorized by shareholders.

The new shares will be allocated on Thursday, according to a term sheet by Credit Suisse, one of the co-bookrunners.

Trading on the Frankfurt stock exchange is expected to start on Sept. 8, 2020.

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